Part 1: New Homes in England Chapter 1: Starter Homes Section 3: Power to require payments or discounts on resale (subject to tapering) etc
The Secretary of State may make regulations under section 2(1)(e) to specify the sales and letting restrictions to which a starter home is subject. Section 3 provides details of what these restrictions may include, and in particular provides for two models. The first model would require a person selling the starter home to make a payment to a specified person on completion of the sale (the "payment model").
	Regulations may specify to whom such a payment must be made and how any sums must then be used. The second model would require the person selling the starter home to sell to another qualifying first-time buyer at a discount (the "sales model"). If either the payment model or the sales model is used, subsection (2) sets out that there must be a taper mechanism under which the amount of the payment due (under the payment model), or the discount (under the sales model) would be reduced over time. Regulations must also set out how the payment or discount is to be calculated. This could be done, for example, by reference to the actual value of the original discount or based on the original discount as a percentage of the property's value.