Shelter: Starter homes unaffordable
According to Shelter, the Government’s starter homes initiative will be unaffordable for families on average incomes in almost 60% of local authorities in England. Those on the national living wage would be priced out of all but 2% of areas by 2020. Single homebuyers on low or average wages would also struggle to afford a starter home in the majority of local authorities and, even when on a higher than average salary, three out of four local authorities would be off limits.
Under the scheme, starter home prices are capped at £450,000 in London and £250,000 in the rest of England. Shelter believes that these thresholds mean that a number of local authorities would probably not build any starter homes because their house prices would go over the maximum amount to which the scheme would apply.
The Times, Business, Page: 40
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