The Government has announced a £20m starter home initiative to help key workers living in housing hotspots outside London get a foot on the property ladder.
A total of 2,000 key workers ‘ including 1,000 nurses, 700 teachers and 220 police officers ‘ will be granted equity loans of £10,000. The announcement follows a similar scheme announced in October last year, where key workers in London benefited from Government loans to help solve the housing affordability crisis in the capital.
The move to help key workers elsewhere in the country indicates the growing problems for first-time buyers as house prices continue to soar. According to the Government, high house prices are undermining staff recruitment and retention drives.
Housing Minister, Lord Falconer, said the initiative would provide help to essential public sector staff to ensure they are not priced out of living in the communities they serve.
A spokesperson for the The Department for Transport, Local Government and Regions (DTLR) said that, although the loans will not solve all key workers’ housing problems, it will give those close to buying their first home an essential boost.
‘This is an important initiative to help people get their first step on the property ladder in areas where house prices are pushing people out of the market.
‘It will not allow people to buy a home if they have not already saved towards covering the expenses of buying a property, but for those people who are close to purchasing, it will be a big help.’
The DTLR has assessed bids by various parties to administer the equity loan scheme and has announced that the schemes will be run primarily by registered social landlords, which submitted the majority of the bids.