The phrase ‘starter home’ is about to become a technical term, and here our Manchester property accountants explain why – and how it could be good news for first-time buyers.
Until now of course, a ‘starter home’ has been an informal term used to refer to first-time buyers’ property, and to the first steps out of rented flats and houses, and into a home that is truly your own.
But the government’s £26 million starter homes initiative aims to cement the term as relating specifically to newly built properties aimed solely at FTBs.
In particular, the newly announced funding aims to buy brownfield sites – of which Manchester has more than its fair share – so councils can build a range of attractive and affordable first homes.
This has obvious benefits, as affordable homes for FTBs are likely to fall below the threshold of common property taxes like stamp duty.
And there are specific extra advantages to the scheme too, such as a 20% discount on the market value of the property for FTBs aged under 40.
Our Manchester property accountants will be watching closely as the first schemes get underway, to tally up the true potential of the starter homes initiative for those struggling to get on to the homeownership ladder in the city.
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