With first time buyers struggling to buy, does the arrival of the £60,000 home offer hope for affordable developments?

Many of us would have caught the news that the Design for Manufacture competition unveiled a £60,000 house at the Building Centre in central London last week.

It was a showcase for the winning designs in the government’s contest to design a good-quality home for a maximum construction cost of £60,000.

Trevor Beattie, the English Partnerships Director with responsibility for the competition, said: “The Design for Manufacture competition has resulted in a host of innovative new home designs and construction techniques that can be used to build homes more economically without sacrificing quality.
“These benefits will be passed on to purchasers in the form of homes that are better built, cheaper to run and above all, cheaper to buy.”

Innovation and cost reduction sound ideal but the scheme isn’t as straightforward as it sounds. A total of six developers have been chosen to build their designs across nine competition sites and construction work is beginning on four of the sites, at Oxley Park in Milton Keynes, Upton in Northampton, Allerton Bywater near Leeds and Renny Lodge, Newport Pagnell. All sites outside the capital.

In addition, the £60,000 is a cost for construction, not sale. A government spokesman admitted: “There is no mechanism to regulate the final sale price of these homes.”

For those looking to stay closer to the capital, the London Wide Initiative, launched by English Partnerships in late 2003, promises to fast-track more affordable homes in Greater London.

Last year English Partnerships acquired land at the West Middlesex Hospital site, Isleworth. John Lewis, director of strategic joint ventures for English Partnerships, said: “This purchase is an excellent example of Government agencies working together to ensure that such surplus land continues to benefit the community.”

Local buyers will be hope that they will be offered low cost but high quality housing at this site but plans for its development remain to be seen.