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

Property auctions generate complaints at four times the rate of the wider housing market

Property auctions account for just 2% of home sales but generate more than four times their share of complaints, according to a new insight report by the Property Ombudsman. The report highlights that while auctions remain a relatively small part of the wider residential property market, they are generating a disproportionately high level of consumer…
Read More
Breaking News

UK rents see upward trend in early 2026

Lomond’s report finds UK average rents rise to £1,384pcm in the first three months of 2026, compared to 2025. Average rent in London reaches £2,339pcm, 69% higher than the UK average. Kent records the network’s highest rental uptick of +9%, in early 2026. Tenant demand strengthens with a +28% increase in viewings activity in 2026.   Lomond observed the average rent across its network of lettings…
Read More
Breaking News

Landlord repossessions rose 6% ahead of Renters’ Rights Act

Landlord possession claims rose by almost 6% in the first quarter of 2026 as property owners moved to regain control of homes before the Renters’ Rights Act came into force on 1 May, according to analysis by LegalforLandlords. LegalforLandlords analysed the latest repossession data* and found that during Q1 2026, a total of 22,733 possession…
Read More
Letting Agent Talk

Tenant confidence in RRA compliance sits at just 32%

Barely a third of managed tenants believe their management company is compliant following RRA changes   The latest insight from property management specialist, Rushbrook & Rathbone, reveals that whilst managing agents had until 31st May to distribute new documentation following the latest RRA implementations, almost 60% of tenants living in managed properties have seen no changes…
Read More
Breaking News

Six issues that make your property unmortgageable

The latest market insight from House Buyer Bureau has revealed six common issues that could see a homeowner’s property deemed unmortgageable by lenders, drastically reducing the pool of potential buyers and making it far harder to sell on the open market. House Buyer Bureau analysed some of the most common reasons properties fail lender criteria, alongside the…
Read More
Breaking News

Homebuyers could make over £26,000 before completion

Buying off-plan: London homebuyers could make over £26,000 before completion The latest research from Foxtons has found that buying a home off-plan can deliver a significant financial uplift, with London buyers potentially making more than £26,000 in added value before they’ve even picked up the keys to their new home. Foxtons analysed average monthly new-build…
Read More