Thirty-first Report - Starter Homes
Select Committee
Public Accounts Committee
HC 88
9 December 2020
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty first report from Session 2019-21 · published 24 Mar 2021
Recommendations & Conclusions
7 results
2
Recommendation
Accepted
The Department’s reliance on developer contributions to fund First Homes is a complex mechanism lacking...
Recommendation
The Department’s reliance on developer contributions to fund First Homes is a complex mechanism lacking transparency and risks less money being available to local authorities for housing and infrastructure. First Homes differ from Starter Homes as they will be sold …
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Government Response Summary
The government agrees with the recommendation and states it has published modelling on the policy's effect on developer contributions. It has also developed a legal framework for the secondary resale market with HM Land Registry, which will be publicly set out in due course.
HM Treasury
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7
Conclusion
Accepted
We asked the Department about the similarities between the new First Homes policy and the...
Conclusion
We asked the Department about the similarities between the new First Homes policy and the Starter Homes policy. The Department emphasised how they differ: • First Homes will be sold at a higher discount of at least 30%, compared with …
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Government Response Summary
The department has developed and started testing a legal framework with HM Land Registry to ensure First Homes discounts are passed on perpetually and will continue to work with stakeholders to ensure a smooth secondary market.
HM Treasury
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13
Conclusion
Accepted
We asked the Department what it now meant when it referred to ‘affordable’ housing, particularly...
Conclusion
We asked the Department what it now meant when it referred to ‘affordable’ housing, particularly in relation to the funding originally intended for Starter Homes that was subsequently redirected to a broader range of housing, including affordable homes.33 The 28 …
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Government Response Summary
The government agreed with the committee's recommendation and stated it was implemented, clarifying its definition of affordable housing in the National Planning Policy Framework and reiterating its commitment to investing over £12 billion in diverse affordable housing.
HM Treasury
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14
Conclusion
Accepted
Homes England told us that the number and proportion of affordable homes planned for the...
Conclusion
Homes England told us that the number and proportion of affordable homes planned for the sites intended for Starter Homes has increased from 1,700 (29%) to 2,370 (36%), reflecting an increased focus on affordable housing.37 However, Homes England was unable …
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Government Response Summary
The government stated it agreed with the committee's recommendation and considered it implemented, by defining affordable housing in the National Planning Policy Framework and committing over £12 billion to delivering a variety of affordable homes through the new £11.5 billion Affordable Homes Programme.
HM Treasury
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15
Conclusion
Accepted
First Homes, and previously Starter Homes, are aimed at people who want to own their...
Conclusion
First Homes, and previously Starter Homes, are aimed at people who want to own their own home and have an income, as the schemes require applicants to raise a mortgage. They are not schemes intended to help house people in …
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Government Response Summary
The government accepted the committee's recommendation to explain its approach to homelessness, rough sleeping, and temporary accommodation, committing to provide an update to the committee within three months (by April 2021).
HM Treasury
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16
Conclusion
Accepted
The Department and Homes England told that they were trying to encourage the building of...
Conclusion
The Department and Homes England told that they were trying to encourage the building of smaller, cheaper homes through investing in firms that build modular homes and encouraging sites with high levels of modular construction. It explained it was looking …
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Government Response Summary
The government agrees with the committee's observation and commits to specific actions by Autumn 2021 to increase the use of modern methods of construction (MMC). These include Homes England funding for showcase sites, industry collaboration on warranties, research into safety, and setting a 25% MMC target within the Affordable Homes Programme's Strategic Partnerships.
HM Treasury
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19
Conclusion
Accepted
Homes England recognised that success in delivering housing would rely on close working with local...
Conclusion
Homes England recognised that success in delivering housing would rely on close working with local authorities, good relationships with developers and mindfulness over land value as the key determinant of delivery and maximising value for money from public subsidy of …
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Government Response Summary
The government accepted the committee's recommendation to explain its approach to homelessness, rough sleeping, and temporary accommodation, committing to provide an update to the committee within three months (by April 2021).
HM Treasury
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