Starter homes plan 'will not work'

Labour's flagship plans for £60,000 starter homes were branded "unworkable" today.

Deputy Prime Minister John Prescott this morning announced a competition to build the first 1,000 cheap starter homes.

But it emerged that only 30 per cent of these will be in the £60,000 bracket.

Housing experts say even these are unlikely to go on the market at that price because the figure does not include infrastructure costs such as road access and sewerage.

Under the scheme the Government provides the land free with developers paying construction and labour costs.

One housing association director said Mr Prescott's plan was "unworkable". "You cannot build a house for that money without compromising quality."

Barratt Homes chief executive David Pretty said that although keen to support the initiative, he was doubtful about the Government's figures.