Cameron made the announcement at the Conservative party conference
The prime minister has vowed to axe planning rules which require property developers to build affordable homes for rent in a bid to increase the building of homes for first-time buyers.
David Cameron said in his speech at the Conservative party conference today, that he hoped his new starter homes proposal could unblock house-building in the UK by abolishing demands that developers provide a certain amount of affordable housing to rent in new developments.
The government set a challenging target of building 200,000 starter homes over this parliament.
Cameron said: “For years politicians have been talking about building what they call affordable homes but the phrase was deceptive. It basically means ones that were only available for rent. What people want are homes they can actually own.
“When a generation of hardworking men and women in their 20s and 30s are waking up each morning in their childhood bedrooms, that should be a wake-up call for all of us. We need a national crusade to get houses built. That means banks lending, government releasing land and, yes, planning being reformed.”
Ministers are set to change the definition of affordable housing to include not just properties for rent, but starter homes. The move forms part of the government’s programme to build low-cost homes for first-time buyers so long as they are under 40 years -old.
It will mean developers will have fulfilled their obligations to a council if they build homes for purchase.
Under the scheme, houses must must be 20 per cent below the market rent and capped at £450,000 inside London and £250,000 outside.
Conservative officials pointed to surveys showing 86 per cent of people in England and Wales want to buy, rather than rent, but Whitehall officials prevent this.
The proposals are likely to be included in the housing bill, expected next month.