Eco-Town Status: At what Cost to First Time Buyers?
by Ritchie Mehta (08 August 2008)
In a bid to aid first time buyers and those that are struggling to get on to the housing ladder, the government has taken a step forward in the development of Eco-towns. Recent announcements by Caroline Flint, Housing Minister, suggest that they plan to create homes in some of the most congested areas of the country, while ensuring that any development is carried out in both an environmentally conscious and sustainable way. The proposals should help housing supply and come at a time when high property prices make buying a rare possibility for first time buyers. So perhaps first time buyers should be interested.
The proposals boast of the creation of new towns that are exemplar green developments of up to 20,000 homes which are both affordable and that have “very high sustainability standards”. In order to qualify the developments will have to achieve among other things;
zero carbon status,
40% of green space land,
30% constitutes affordable housing
offers sustainable transport.
The government has shortlisted 15 sites across the UK such as Elsenham and Ford, which have severe shortages of suitable housing, or Marston Vale and New Marston, former industrial areas. Up to 10 locations across the UK will be finalised in early 2009.
However, what seems like an innovative solution for first time buyers could well turn out to be an expensive venture, with the buyer ultimately picking up the tab. The extra resources required for these innovative ‘green towns’ could prove more costly than traditional developments. With the current poor state of the construction industry combined with poor 2009 projections, the question begs to be asked - who will build these eco-friendly houses and will they really help struggling first time buyers?