Starter homes project to help young people onto housing ladder is scrapped

Dudley Council has blamed the Government for the collapse of the programme, which aimed to create cheaper housing on the sites of former council buildings.

Bosses said the ‘required legislation’ for the scheme had not yet been passed by the Government. The homes will instead be sold at market value.

A total of 62 starter homes were going to be made available as part of a scheme to build on the sites of the former Mere Centre in Stourbridge, Amblecote House care home in Brettell Lane, Turner House in Wrens Nest and the old St Thomas’ Network, Beechwood Road.

The plan was hailed by council leader Patrick Harley when it was announced last year, who said the authority had 'seized the opportunity to support people who want to buy their first home, but are forced out of the market due to ever-increasing house prices'.

First-time buyers aged between 24 and 39 would have been have saved 20 per cent on the value of a house, under the scheme to try and make it easier for them to buy their own home.

Chiefs said as the scheme had not been brought to by Parliament, and was unlikely to any time soon, it would not be able to go ahead.

Dudley Council was given £625,000 from the Homes and Communities Agency (HCA), which launched the starter homes initiative, to demolish the buildings and build the homes.

Bosses say homes will still be built, of which 25 per cent will be affordable in order to comply with planning conditions.

A total of 59 homes will be sold at market value and 20 affordable properties made available for rent.

A report on the scheme said: "The Government has not yet passed the required legislation with the detailed regulations for the starter homes scheme and pressures on the legislative timetable indicate that it is unlikely that the legislation will be put before Parliament, so the starter homes programme and, hence, our starter homes scheme, will not progress."

Councillor Laura Taylor, cabinet member for housing, said: “This is a major decision for Dudley, it is the first time as an authority in decades we are able to pursue a project to build homes for outright sale at market value alongside our ongoing project to build new affordable council homes.

"This decision refines what we had originally planned, and we will build on the experience we have gained in recent years from developing quality council homes. We are confident we can deliver the homes that people want at affordable prices. This is an exciting time for us and any return on our investment will be used to support future housing investment as well as boosting general fund reserves to continue to improve council services for all of our residents.”