24 October 2003
Public sector workers put off by soaring house prices in London and the Southeast are being offered new incentives to find homes.
The government's starter home initiative is due to come to an end in April, having helped about 9,000 key workers buy their first property – 1,000 below the target.
Measures worth £603m announced by Deputy Prime Minister John Prescott on October 21 will aim to help employees to upgrade to larger family-sized properties.
Workers are to be eligible for loans of at least 25% of the house price, up to a limit of £50,000. Renting is also being encouraged, at sub-market prices, along with shared ownership schemes.
The government is committed to spend at least £1bn on key worker housing over the next three years. The definition of key worker may also be extended. The Office of the Deputy Prime Minister says it has listened carefully to what workers and employers want.
Prescott, who praised the way regional housing boards had balanced competing demands in drawing up their new regional strategies, also announced that the housing 'pot' will now be worth a total of £5bn over two years. Transitional support for RSLs is being increased by £75m, he added.
PFoct2003
