NFB criticises Government over starter home fiasco

Government has pulled the rug from under small builders

The National Audit Office says that despite being announced in 2014, the Government’s starter homes policy has delivered zero homes instead of the promised 200,000 by 2020.

Richard Beresford, chief executive of the National Federation of Builders (NFB) said: “We worked hard with the Government to make them understand how important this policy was to small builders and communities. They’ve not only pulled the rug from under small builders, including many hard-working NFB members, but also from under thousands of homebuyers who would have benefited from this policy.”

A Government spokesperson said, ‘Even new homes conforming to the intended specifications cannot be marketed as starter homes, which has made getting developers on board challenging.’

The NFB, which has been the major driver behind keeping the starter homes conversation alive, says the Government is being disingenuous. The Government needs to remember that developers are not always housebuilders and that housebuilders often build homes for others, which in this case, could have been councils, Homes England, Government or even a developer.

Priced at no more than £250,000 outside London and £450,000 inside the capital, the only criteria for eligibility was to be a first time buyer and under 40 years old. The scheme was meant to deliver on brownfield sites, a specialty of small builders, and deliver much needed planning certainty.

Rico Wojtulewicz, head of housing and planning policy at the House Builders Association, said: “Only last week we tried to make contact with Homes England about starter homes and we now know why we didn’t get a response. The Government has failed to deliver on a key promise that industry had planned for. They must either deliver or kill this policy – or they risk further damaging small and medium sized builders.”

National Federation of Builders

The National Federation of Builders is a United Kingdom trade association representing the interests of small and medium-sized building contractors in England and Wales.

You May Also Enjoy

Breaking News

Applicant budgets remain stable and rental prices in line with historic norms

Ratio of new renters per instruction rose by 5.1% from 8.9 to 9.4 applications per instruction. Average rental prices declined by 4% in November 2025, remaining closely aligned with November levels observed over the past four years. Year-to-date, average rental prices are 2% higher in 2025 compared to 2024.   New data from Foxtons, London’s…
Read More
Estate Agent Talk

The Impact of Increasing Lease Conversions on Estate Agents in 2026

2026 is shaping up to be a watershed year for the property market. Economic pressures, shifting demand and regulatory changes are converging to create a surge in lease conversion applications. For estate agents, this “perfect storm” will reshape the portfolios they manage and redefine their role in advising landlords. Mustafa Sidki of the construction team…
Read More
Breaking News

First-time buyers help drive the most home moves for three years

Zoopla forecasts 1.5% house price growth for 2026 Housing sales hit 1.2 million over 2025 despite Q4 Budget slowdown More sales doesn’t mean faster price growth – house prices rise just 1.1 per cent (vs 1.9 per cent in 2024) The hottest markets for price growth across Britain are the Scottish Borders (TD postal area…
Read More
Breaking News

Mortgage Lending Statistics – December 2025

Latest findings The outstanding value of all residential mortgage loans increased by 0.9% from the previous quarter to £1,733.7 billion, and was 2.9% higher than a year earlier. The value of gross mortgage advances increased by 36.9% from the previous quarter to £80.4 billion, the largest increase in new advances since 2020 Q3, and was…
Read More
bank of england interest rate
Breaking News

Bank of England interest rates decision – Thoughts from the Industry

The Bank of England has just announced its decision to cut the base rate to 3.75%, the first cut seen since August of this year. This decision comes after inflation (CPI) dropped to 3.2% in November (from 3.6% in October), slowly edging towards the Bank’s 2.0% target. The Monetary Policy Committee voted 5-4 in favour…
Read More
Breaking News

A Winter Rate Cut to Thaw the Market

By Kevin Shaw, National Sales Managing Director, LRG Today’s reduction in interest rates is very welcome news – for homeowners, buyers, property professionals, and no doubt Government ministers. This warming news is set against a chilly backdrop: unemployment has increased to 5.1%, while the November Budget tightened the fiscal screws. Inflation, however, has eased to…
Read More