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Government housing aid for key workers

Housing minister, Nick Rainsford, today announced plans to tackle the chronic recruitment problems caused in the Southeast by the high cost of housing. Those who qualify could receive government grants of up to £25,000 towards their housing costs.

The sectors most likely to benefit are teaching, policing and nursing where low pay has forced many potential recruits to seek employment in alternative industries or live away from their place of work. The Starter Homes Initiative will target 10,000 key workers at a cost of £250 million, with the emphasis on the London and the southeast where house prices are often well beyond the reach of even those on middle incomes.

Through the plan the government will assist people looking to purchase homes at the lower end of the property market. It is thought that this will include homes worth up to £100,000 in London. Alongside grants, aid may also be found through interest free loans and shared ownership schemes.

At present there are no firm guidelines on how the scheme will function and it will be up to local authorities, councils and private developers to prove their area requires aid.

This latest scheme follows in the wake of a major review of housing in the UK with the recent white papers for rural and urban areas both focusing strongly on housing issues, plus the government's controversial plans to introduce seller's packs.