Skip to content
Friday 24 July 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
City PM

European business, markets and politics

FTSE 100
10,736.23
+0.91%
DAX
25,099.00
+1.36%
CAC 40
8,372.28
+0.88%
STOXX 50
6,280.94
+1.14%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Tuesday 05 November 2019 10:01 am  |  Updated:  Tuesday 05 November 2019 10:02 am

Government ‘failed to deliver starter homes promise’

By: Jessica Clark

Add as a preferred source on Google
Starter homes

Ministers failed to deliver on a promise to build 200,000 new starter homes, despite announcing a £2bn investment to support the project, according to the government spending watchdog. 

Starter homes were intended to be houses built for first-time buyers under the age of 40 and sold at a 20 per cent discount, and in 2015 the government pledged £2.3bn towards the project. 

Read more: Government should ‘overhaul stamp duty to boost housing market’

However, no starter homes have been built, a report by the National Audit Office (NAO) found. 

The report said secondary legislation had not been passed to allow houses that conformed to the intended specifications be marketed as starter homes. 

The legislation was expected to be introduced this year but the Ministry of Housing, Communities and Local Government has not yet presented the regulations to Parliament and no longer has the budget dedicated to building the homes. 

The funding intended for the project has been spent on acquiring and preparing brownfield sites for housing more generally, the report found.

Read more

London doesn’t need more social housing, it needs more housing full stop

Luxurious mansions surrounded by manicured gardens in an upscale residential neighborhood, highlighting opulent housing tr...

Between 2015/16 and 2017/18, the housing department has spent almost £174m preparing sites originally intended for building starter homes.

A housing department spokesperson said: “We are committed to building more homes and supporting people into home ownership. 

Read more: Four tactics buyers must use to beat sellers in London housing market

“We have a great track record and house building is at its highest level for all but one of the last thirty years – with 222,000 homes delivered last year, and 1.3 million in total since 2010, including over 430,000 affordable homes.”

“The number of first time buyers is currently at an 11-year annual high, and over 560,000 households have been helped into home ownership through government schemes like Help to Buy and Right to Buy.”

Main image credit: Getty

Read more

Housebuilder hits a wall: How did Vistry become the UK’s most shorted stock?

Construction workers in hard hats and high-vis jackets on scaffolding around a Vistry housing development.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Property

Trending Articles

  • BT braces for loss of 800,000 customers as it banks on fibre to keep turnaround ‘on track’

  • Regulator flags BDO’s ‘unacceptable’ audit issues for fifth year in a row 

  • Wise denied US banking licence in blow to expansion plans

  • Tax rises ‘guaranteed’ as Healey faces £22bn black hole from Burnham spending plans

  • ‘We are going to run out’: Mitie marks eleventh mega takeover of 2026

More from City PM

  • London doesn’t need more social housing, it needs more housing full stop

    Opinion
    Luxurious mansions surrounded by manicured gardens in an upscale residential neighborhood, highlighting opulent housing tr...
  • Housebuilder hits a wall: How did Vistry become the UK’s most shorted stock?

    Property
    Construction workers in hard hats and high-vis jackets on scaffolding around a Vistry housing development.
  • Stop recycling Angela Rayner and reform planning instead

    Opinion
    Angela Rayner finds herself in hot water over her tax affairs
  • Housebuilders urge Rayner to ‘hit the ground running’ and rip up planning red tape

    Property
    Angela Rayner, Deputy Leader of the Labour Party, smiling in glasses at an event with camera crew and lighting
  • Richard Desmond puts £1bn Westferry development up for sale

    Property
    Richard Desmond's legal battle against Gambling Commission opened at High Court. Photo by Peter Macdiarmid/Getty Images
  • Barratt Redrow urges Burnham to slash tax to boost housebuilders

    Property
    Barratt and Redrow partnership announcement showcasing executives shaking hands in a modern office setting
  • Why does Britain treat housebuilding as one big burden?

    Opinion
    Modern house under construction with scaffolding, highlighting progress in sustainable building methods and materials.
  • Sadiq Khan’s London plan is not nearly ambitious enough

    Opinion
    The Mayor of London, Sir Sadiq Khan, has this morning announced a £1.4m cash injection for community sport across the capital.
CityPM

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About City PM
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 City PM Ltd · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook