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Dawn Butler MP speaks out against government’s unaffordable starter homes


Dawn Butler MP has criticised the government’s starter homes scheme under the new Housing & Planning Act in a speech in the House of Commons.

Speaking in a debate on the Consideration of Lords’ amendments to the Bill, Dawn Butler MP highlighted that the government’s starter homes were still unaffordable for Brent residents.

Under the Housing & Planning Act planning authorities have a duty to promote the supply of starter homes. These are new-build properties to be sold to first-time buyers under the age of 40 at a discount of 20% off the market rate and subject to a cap of £450,000 in London.

Ms Butler broke down what that means for the average Brent resident:

“I will explain how that affects my constituents in Brent Central. Twenty per cent of £450,000 is £90,000, which ​brings the rough cost of starter homes in Brent down to £360,000. If a mortgage for £360,000 with an interest rate of 3.92% is to be repaid over 25 years that means a payment of £1,884 per month. The median household income in Brent is £31,601, and an individual earning that amount will bring home £2,054.66 a month after tax. That means that the average person in my constituency would have to spend 91.6% of their entire average income on mortgage repayments, which is most definitely not affordable.”


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