Section 2 — Housing and Planning Act 2016: What is a starter home?

What is a starter home? 2 1 In this Chapter “ starter home ” means a building or part of a building that—

a is a new dwelling, b is available for purchase by qualifying first-time buyers only, c is to be sold at a discount of at least 20% of the market value, d is to be sold for less than the price cap, and e is subject to any restrictions on sale or letting specified in regulations made by the Secretary of State (for more about regulations under this paragraph, see section 3). 2 “ New dwelling ” means a building or part of a building that—

a has been constructed for use as a single dwelling and has not previously been occupied, or b has been adapted for use as a single dwelling and has not been occupied since its adaptation. 3 “ Qualifying first-time buyer ” means an individual who—

a is a first-time buyer, b is at least 23 years old but has not yet reached the age of 40, and c meets any other criteria specified in regulations made by the Secretary of State (for example, relating to nationality). 4 “ First-time buyer ” has the meaning given by section 57AA(2) of the Finance Act 2003. 5 “Purchase”: the reference to a building or part of a building being available for purchase is to a freehold or a leasehold interest in the building or part being available for purchase.

6 The “price cap” is set out in the table. Location of starter home Price cap Greater London £450,000 Outside Greater London £250,000 7 The Secretary of State may by regulations—

a amend the definition of “first-time buyer”;

b disapply the age requirement in subsection (3)(b) in relation to specified categories of people;

c specify circumstances in which a dwelling may still be a starter home even if it is available for purchase by joint purchasers not all of whom meet the age requirement.

8 The Secretary of State may by regulations amend the price cap; and the regulations may provide for different price caps to apply—

a for starter homes in different areas in Greater London;

b for starter homes in different areas outside Greater London.

9 Before making regulations under subsection (8) the Secretary of State must consult—

a each local planning authority in England, b the Mayor of London, and c any other person the Secretary of State thinks appropriate.

10 Regulations under this section may amend this Chapter.