NEW starter home proposals unveiled by David Cameron would be unaffordable to even high income families in Brighton and Hove, a housing charity has warned.

The Prime Minister announced proposals for starter homes to buy to replace affordable homes for rent in new developments approved by councils during his speech to close the Conservative conference in Manchester.

Starter homes must be offered for sale at a discount of 20% below market rates with a maximum price of £250,000 outside London, available only to first-time buyers aged under 40.

But the charity Shelter claims the homes would be unaffordable to all earning the new national living wage in Sussex and outside the financial reach of even those on high incomes in many parts of the county, including Brighton and Hove, Lewes, Adur and Chichester.

Politicians in Brighton and Hove said the policy would do nothing to ease the housing crisis in the city.

Councils can currently order a percentage of homes in any development to be affordable homes for rent but under the new plans developers in England will be allowed to meet the requirement by building properties for purchase under the Government's Starter Homes initiative.

The Prime Minister claims that the existing rental-only requirement is blocking the construction of much-needed homes because developers are reluctant to invest in properties because of lack of demand and low profit.

Mr Cameron said his ambition was to turn "generation rent" into "generation buy" and said the proposal would go a long way to hitting the Conservatives' election pledge to build 200,000 affordable homes by 2020.

Councillor Anne Meadows, chairwoman of Brighton and Hove City Council's housing and new homes committee, said: “We do not believe these plans are a real solution for affordable housing.

“We have very real problems in the city due to the high cost of housing, but what we need are more affordable homes and we will be bringing forward our own plans for hundreds of truly affordable homes in the near future.”

Councillor David Gibson, Green spokesman for housing, said: “This is the latest in a series of measures by central government to impose ill-considered restrictions on local councils, further removing local accountability for planning policy and tying the council’s hands.

"People in the city are facing exorbitant rents, what is really needed are new council houses and living rents enforced by rent controls in the private sector.

"Sadly the ability to require developers to create affordable housing for rent will get much harder under these proposals. “

Conservative councillor Ann Norman said on Twitter: “Sensible plans for more affordable housing. “Much needed here in Brighton and Hove and so many other areas.”