Key workers, such as nurses and teachers, who participate in affordable housing schemes will be given cash to help them with solicitors’ costs and purchasing furniture.
Prime minister Gordon Brown said cash grants of £1,500 will be offered to buyers who take up a shared equity loan under the government’s Open Market Homebuy scheme (OMHB).
More than £3m has initially been earmarked for the first wave of grants, enough for 2,000 people, Brown said.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Under OMHB, key workers can boost their purchasing power by up to 50%. This means a household with an income of £32,000 could afford a house of £200,000, paying £760 each month – as opposed to £1,350 without the scheme.
Brown said: “We want to do more for people who may need an extra hand to buy their first home. By offering new grants and sharing a stake in their home, we are making the dream of a new home more affordable for thousands of low-income, first-time buyers and key workers such as nurses and teachers.”
