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None of pledged starter homes built, says watchdog | None of pledged starter homes built, says watchdog |
(about 3 hours later) | |
A government plan to create 200,000 new homes in England for first-time buyers has resulted in no homes being built, the National Audit Office has found. | A government plan to create 200,000 new homes in England for first-time buyers has resulted in no homes being built, the National Audit Office has found. |
Announced in 2014, "starter homes" were meant to be aimed at those under the age of 40 and sold at a 20% discount. | Announced in 2014, "starter homes" were meant to be aimed at those under the age of 40 and sold at a 20% discount. |
But legislation to take the project forward was never passed. | But legislation to take the project forward was never passed. |
Labour called the policy a total failure, but the government said it had a "great track record" for house building. | Labour called the policy a total failure, but the government said it had a "great track record" for house building. |
Former prime minister David Cameron committed to the scheme in the 2015 Conservative Party manifesto as a way of tackling the affordable housing crisis. | Former prime minister David Cameron committed to the scheme in the 2015 Conservative Party manifesto as a way of tackling the affordable housing crisis. |
The project was also supposed to support the wider growth and regeneration of local areas, and some town centres. | The project was also supposed to support the wider growth and regeneration of local areas, and some town centres. |
The homes were meant to be built across the country by the end of the decade and more than £2bn was set aside for the first tranche of 60,000 dwellings. | The homes were meant to be built across the country by the end of the decade and more than £2bn was set aside for the first tranche of 60,000 dwellings. |
According to the National Audit Office (NAO), between 2015-16 and 2017-18, the Ministry of Housing, Communities and Local Government (MHCLG) spent almost £174m on acquiring and preparing sites originally intended for building starter homes. | According to the National Audit Office (NAO), between 2015-16 and 2017-18, the Ministry of Housing, Communities and Local Government (MHCLG) spent almost £174m on acquiring and preparing sites originally intended for building starter homes. |
These were in places such as Plymouth, Bury, Basildon, Stockport, Bridgwater, Cinderford and Bristol. | These were in places such as Plymouth, Bury, Basildon, Stockport, Bridgwater, Cinderford and Bristol. |
But the spending watchdog said the sites were all now being used for housing more generally, only some of which was affordable. | But the spending watchdog said the sites were all now being used for housing more generally, only some of which was affordable. |
'Dashed expectations' | 'Dashed expectations' |
It said the scheme had faltered because the necessary legislation and planning guidance had never been put through Parliament, despite expectations it would happen in 2019. | It said the scheme had faltered because the necessary legislation and planning guidance had never been put through Parliament, despite expectations it would happen in 2019. |
As a result, even new homes conforming to the intended specifications cannot be marketed as starter homes, which has made getting developers on board challenging. | As a result, even new homes conforming to the intended specifications cannot be marketed as starter homes, which has made getting developers on board challenging. |
The NAO said the government also no longer had a budget dedicated to the starter homes project. | The NAO said the government also no longer had a budget dedicated to the starter homes project. |
Labour MP Meg Hillier, chairwoman of the Public Accounts Committee, said: "Despite setting aside over £2bn to build 60,000 new starter homes, none were built. | Labour MP Meg Hillier, chairwoman of the Public Accounts Committee, said: "Despite setting aside over £2bn to build 60,000 new starter homes, none were built. |
"Since 2010 many housing programmes announced with much fanfare have fallen away with money then recycled into the next announcement. | "Since 2010 many housing programmes announced with much fanfare have fallen away with money then recycled into the next announcement. |
"The MHCLG needs to focus on delivery and not raise, and then dash, people's expectations." | "The MHCLG needs to focus on delivery and not raise, and then dash, people's expectations." |
John Healey, Labour's shadow housing secretary, said the Conservative Party had wasted four years and spent millions of pounds. | John Healey, Labour's shadow housing secretary, said the Conservative Party had wasted four years and spent millions of pounds. |
"After nearly 10 years of Conservative failure on housing, the country needs a Labour government to fix the housing crisis." | "After nearly 10 years of Conservative failure on housing, the country needs a Labour government to fix the housing crisis." |
But a housing ministry spokeswoman said house building was at its highest level for all but one of the last 30 years. | But a housing ministry spokeswoman said house building was at its highest level for all but one of the last 30 years. |
"We have a great track record... with 222,000 homes delivered last year, and 1.3 million in total since 2010, including over 430,000 affordable homes." | "We have a great track record... with 222,000 homes delivered last year, and 1.3 million in total since 2010, including over 430,000 affordable homes." |
'Workable rules' | 'Workable rules' |
David O'Leary, policy director at Home Builders Federation, said that even though starter homes had not got off the ground, the scheme had not been a total failure. | David O'Leary, policy director at Home Builders Federation, said that even though starter homes had not got off the ground, the scheme had not been a total failure. |
He said the engagement it had generated between local government, builders, mortgage lenders and valuers was positive. | He said the engagement it had generated between local government, builders, mortgage lenders and valuers was positive. |
"The difficulty in creating a workable set of rules demonstrates the importance of ensuring that proper consideration is given to the practical implementation of interventions and their market impacts as early as possible." | "The difficulty in creating a workable set of rules demonstrates the importance of ensuring that proper consideration is given to the practical implementation of interventions and their market impacts as early as possible." |