According to Halifax, key workers are unable to afford property in 70% of towns in the country, up 34% from 2002. A number of schemes have been introduced recently to assist key workers in getting on the property ladder.
Who qualifies?
You must be a first-time buyer working in the public sector in an occupation eligible for a key worker scheme. Your household income should not exceed £60,000 and you should have a mimimum of five years before retirement.
Key workers in London and the South East
Most key worker schemes are targeted towards London and the South East, where rising house prices have created a shortage of staff. If you live in London, Berkshire, Buckinghamshire, Oxfordshire, Hampshire, Surrey, Hertfordshire, Kent, Sussex, Essex, Bedfordshire, Cambridgeshire, Norfolk and Suffolk, the following options are available under the Key Worker Living programme.
1. Open Market HomeBuy
Key workers receive a loan for 25% of the property price, which is only repayable when the property is sold, or the mortgage has been repaid. This equity loan allows key workers to borrow a maximum of £50,000. No more than 3% interest will be charged on the loan and no deposit is needed, but putting down a deposit will lower your mortgage or loan repayments.
2. New Build HomeBuy
Key workers are eligible to buy a minimum share of 25% in a new-build property. The scheme is also available for first-time buyers and housing association tenants, although some cater exclusively for key workers. In areas where key workers are in demand, they will be given priority over other applicants.
3. Intermediate renting
For key workers not ready to buy a property, this option offers homes to rent for 70-80% of the standard local rate. With lower rent, key workers have more chance to save for a deposit to buy a home, and will be assured a short-hold tenancy as long as they remain a key worker.
Key workers in the rest of the country
For key workers not living in London and the South East, there are still options available. The NHS provides short-term intermediate rented accomodation for all key workers. Shared ownership is also an option for all first-time buyers including key workers. For more housing options, contact your local council to learn about schemes that are suitable for you.
Who is a key worker?
Definitions differ from one council to another - check with your local council to see if you qualify.
- Clinical NHS staff (with the exception of doctors and dentists)
- Teachers and nursery nurses
- Police officers
- Prison Service staff
- Probation Service staff
- Social workers, nursery nurses, educational psychologists and therapists
- Local Authority Planners
- Firefighters
- Connexions Personal Advisors
- Environmental Health Officers and Practitioners
- Highways Agency Traffic Officer staff
- MoD (certain personnel) qualify for new build products (New Build HomeBuy and Intermediate Rent)
See also
Key facts
- Key workers cannot afford average priced properties in 65% of towns, compared to 24% five years ago
- Seven out of the ten most affordable UK towns for key workers are in Scotland
- 100% of London boroughs are too expensive for public sector workers
- Nurses have the most affordability problems
- 78% of towns are unaffordable for teachers in March 2007, compared to 45% in 2002
Source: Halifax survey, 2007
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