What is a zone agent?
A zone agent is a registered social landlord that markets housing schemes for key workers across an area. They deal with applications and arrange the help you need.
Who is a key worker?
For the purposes of this scheme, a key worker is someone
- employed by the public sector
- in a frontline role delivering an essential public service
- in a sector where there are serious recruitment and retention problems.
Which key worker groups will be helped?
The Key worker living scheme will focus on groups in the health, education and community safety sectors.
back to top
Who can benefit?
If you are a 'key worker' in one of the groups listed below you could get help to buy your first home or to move into a family home. Opportunities are also available to rent homes at affordable prices.
This help is available in London , the South East and the East of England where the high cost of housing is affecting employers' ability to recruit and keep staff.
Key workers who may get help are:
- nurses and other NHS staff;
- teachers in schools and in further education and sixth form colleges;
- police officers and some civilian staff in some police forces;
- prison service and probation service staff;
- social workers, educational psychologists, planners (in London ), occupational therapists and (from May 2004) speech and language therapists employed by local authorities; and
- whole-time junior fire officers and retained fire fighters (all grades) in some fire and rescue services (currently only in Hertfordshire).
Eligibility criteria will vary across regions depending on local recruitment and retention priorities.
back to top
Does a key worker contact the agent covering the area where they work or where they want to live?
Where they work.
How do I know if I am eligible for help?
You need to contact the relevant zone agent who can tell you which key workers in your area can get help and whether you are eligible. (This depends on how big the problem of recruiting and keeping staff is.)
How did you decide which groups of key workers to include?
Our focus is on frontline delivery in the areas of health, education and community safety. In addition to groups like health workers, teachers and police, we intend to support others such as social workers and, on a pilot basis in London , Local Authority planners.
These priorities reflect the importance we attach to improving standards by tackling recruitment and retaining essential skills to support services in areas where key workers cannot afford to live. To give an example, the Institute of Policy Studies in Education found that for teachers in a sample of seven London LEAs the overwhelming incentive to leave London was the cost of housing.
back to top
What evidence is there of serious recruitment and retention problems in the health, education and community safety sectors?
In 2003 there were around 1,020 vacancies in maintained schools in London , 670 in the South East and around 450 in the East of England. As of January 2003 there were 1,610 school posts being filled by temporary workers. A study by the Greater London Authority found turnover rates for teachers in individual schools as high as 30% in 2001. The survey also found that 63% of teachers surveyed stated "cheaper accommodation" as a reason for seeking work outside London .
In 2002 there were 2,750 (6.1%) nursing vacancies in London , 1,570 in the South East (4%) and 930 (3.8%) in the East of England (compared to 3.1% in England overall). Keep London Working found that around 1 in 5 nurses surveyed were expecting to actively seek employment outside of the capital in the next year. The survey also found that around 60% of nurses surveyed stated cheaper accommodation as a reason for seeking work outside London .
Police forces continue to loose large numbers of officers. In the 12 months to March 2002 the Metropolitan Police Service lost a total of 1,262 officers, the South East lost 850 and the East of England 523.
In London , gross vacancies for prison officers in 2003 stood at 156 posts (6.67%), 236 posts (10.05%) in the South East and around 87 posts or 5.95% in the East of England. HM Prison Service forecasts a significant prison officer shortfall by April 2004 of around 82 officers in London , 93 in the South East and around 95 in the East of England.
Could I buy any type of property?
You have to buy a property suitable for your household's needs and within a reasonable travelling distance of your workplace.
back to top
How much will I receive?
This will depend upon your household's income, savings, any property you already own, any financial commitments such as student loans, the mortgage you can get, and the purchase price of the property you are buying. The maximum loan is £50,000, except in the case of higher-value equity loans for some school teachers in London .
What is an equity loan?
This is a loan up to a limit of £50,000 (some London school teachers will be eligible for a higher limit). You do not make monthly repayments as you do not repay the loan until you sell the property or stop being a key worker. At that time you would need to repay a percentage of the property's value at the time. The percentage would be the same as the percentage of the purchase price your equity loan covered. So if you got a £40,000 equity loan to buy a home for £160,000, the loan would represent 25% of the purchase price, and you would have to repay 25% of the value of your home when you sell it or stop being a key worker. You can ask the zone agent for more information.
back to top
What is shared ownership of newly built properties?
You are helped to buy a share (for instance 50%) of a newly built property within reasonable travelling distance of your workplace (if any are available) and you pay a reduced rent to a registered social landlord who will own the remaining share of the property. You can increase your share in the future when you can afford it and you may even buy outright. If you sell the property, the percentage of the proceeds you receive is equal to the percentage of the property you own. If you stop being a key worker, you will no longer be eligible for help. You can ask the zone agent for more information.
If I already own a home am I still eligible for the scheme?
Yes. If you already own a home and you meet the eligibility criteria, you could receive help to buy a larger home to meet your family needs.
What happens if I need to move to a larger home when I start a family?
If you still meet the eligibility criteria for help as a key worker, you can sell the first home and carry forward the help you received. You can use the proceeds of the sale, plus the help you originally received and any further help you are entitled to (up to an overall maximum of £50,000, or higher in the case of some London school teachers), to buy a bigger home.
back to top
What level of rents will be charged for 'intermediate rent' homes?
You are likely to pay around 75% to 80% of the local market rent for the type of property you live in. You would have an assured shorthold tenancy while you remain a key worker.
Will key workers have to pay tax on their housing assistance?
In the large majority of cases, the provision of assistance will either create no tax liability or only a very small one.
Will the Key worker living scheme support the provision of rented accommodation for key workers?
Yes. As part of the programme, properties will be made available to key workers for intermediate renting. That is, at a rate between social rents and open market r
ates.
back to top
If I am not eligible for help under this scheme, are there any other schemes available that may help me?
Registered social landlords run other low-cost homeownership schemes for people who cannot afford to buy a home. You can get details of registered social landlords running schemes in your area from the Housing Corporation's local offices. Phone the Housing Corporation on 0207 393 2000 for the phone number of your local office.
There is also a small scheme for key workers in the South West. Contact the Housing Corporation local office on 01392 428200 for further information.
Are key workers who are in the UK on work permits eligible?
Key workers who are subject to immigration control will be entitled to apply for rented accommodation available under the programme, provided that they meet the particular eligibility criteria for their sector of employment.
Only key workers who have permanent leave either to enter or to remain in the UK will be eligible to apply for assistance to help them buy a property (including under shared ownership). Applications for indefinite leave by those on a work permit can be made to the Home Office once the key worker has been employed in the UK for 4 years.
Key workers from member states of the EU/European Economic Area and those not subject to immigration control are eligible to apply for help in buying a home in the same way as key workers from the UK.
back to top |
