Part 1: New Homes in England Chapter 1: Starter Homes Section 2: What is a starter home?
This section explains what a starter home is, and enables the Secretary of State to make regulations about the definition of a starter home.
	A starter home is a new dwelling which is only available for purchase by qualifying first-time buyers and which is made available at a price which is at least 20% less than the market value.
	The section sets out the essential criteria a person must fulfil in order to be a 'qualifying first-time buyer' which includes that they are a first-time buyer (which is separately defined in the section by reference to the definition in section 57AA(2) of the Finance Act 2003), and that they are at least 23 years old but under the age of 40. Section 57AA(2) provides that a first-time buyer is a person who has not previously acquired freehold or leasehold residential property in the UK, or its equivalent in Scotland or elsewhere, and who has not previously purchased property under alternative finance arrangements. The Secretary of State may amend this definition of first-time buyer through regulations.
	The Secretary of State may also through regulations specify additional criteria (e.g. nationality) that a first-time buyer must fulfil. The Secretary of State may also provide some flexibility around the age criteria including disapplying the criteria from certain groups of people (for example based on their occupation) or if a starter home is being purchased by joint purchasers and one party does not fulfil the age criteria.
	This section also specifies a maximum price that a starter home may be sold to a first-time buyer: the price cap is £250,000 outside Greater London and £450,000 in Greater London. That price cap reflects the maximum threshold for the Help to Buy ISA. The Secretary of State can through regulations amend these price caps and set different price caps for different areas. Before making regulations to amend the price caps the Secretary of State must consult each local planning authority, the Mayor of London and any other person he thinks appropriate.
	The Secretary of State can, through regulations, place restrictions on the sale and letting of starter homes. The purpose of such restrictions would be to ensure that starter homes are purchased by people who wish to own their home rather than by people who wish to use the property for rental investment or short-term speculation. Details about what these regulations may contain are set out in section 3.