TEACHERS will benefit from a new pound;250 million fund to help them buy their first homes in housing “hot-spots”, such as London, where they have been priced out of the market.
The money will be available over three years from 2001-2 to 2003-4 to help key workers including teachers and nurses to get a foot on the ladder.
Funding for the Starter Home Initiative, announced this week by housing minister Nick Raynsford, is part of last week’s pound;43 billion comprehensive spending review which included pound;1.8bn for housing. Funding could take the for of interest-free loans or other support for first-time buyers. But the Government is likely to demand a matching contribution, either from mortgage companies or buyers themselves.
Details of how the scheme will work are not expected until October. The proposals, part of the housing Green Paper issued this year, are still officially out to consultation, but the size of the fund means it is likely to go ahead.
The escalation of housing prices in the capital has been blamed for the growing teacher recruitment crisis in London.
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