A £690m UK government initiative, The Key Worker Living Programme was created to provide financial assistance for public sector workers seeking to buy or rent a home near their workplace.

Eligibility

The Key Worker Living Programme helps nurses, teachers, and other key workers who cannot afford housing in certain parts of the country. If you are a key public sector worker, you could get financial assistance to help buy or rent a home. Other key workers that may meet the requirements for the programme include police officers and certain types of police forces civilian staff, prison and probation officers, social workers, educational psychologists, occupational therapists working under local councils, full-time junior fire officers, and permanent fire fighters.

To be able to participate in the Key Worker Living programme, potential grantees must be employed and in the following situation:

1. Cannot afford to buy or rent a home that meets their current household needs
2. Have a household income that does not exceed £60K
3. Be a first time buyer
4. Be existing home owners who need to move to a larger home to meet their household needs.
5. Need to take part in shared ownership

Types of Products

1. Home Buy - equity loans of up to £50,000 towards property purchase
2. Higher Home Buy - equity loans of up to £100,000 for some teachers in London
3. Shared ownership deals for new properties
4. Intermediate renting - rent costs are fixed between levels charged by private and social lenders

The amount of the equity loan available to each individual depends on a number of factors that include household income, assets, and financial commitments.

Property Size

The HomeBuy Agent / RSL will determine the current needs of the applicant's household. Needs are based on age, number of people in the household, gender, and other family issues.

Location

Properties must be purchased within a reasonable traveling distance from the applicant’s workplace. The HomeBuy Agent/RSL will consider each case individually and determine what distance is reasonable.

Types of HomeBuy Offered

1. Open Market HomeBuy - A loan to help buy a home on the open market. You are required to raise a mortgage of about 75 per cent of the property's value.
2. New Build HomeBuy - You can buy at least 25 per cent of the cost of your home and pay a reduced rent on the remaining share.
3. Intermediate Renting - Rent is at a level set by social and private landlords. Accommodation is provided by a Registered Social Landlord.

Considerations

As of October 2006, lenders will provide a replenished equity loan alongside the loan provided by the Government. If you currently have a home, you have to be able to sell it before taking part in the programme. Applications for all types of key worker accommodation should be made through the Key Worker Living Programme. This is a government-led initiative whose main purpose is assisting key workers with accessing affordable housing.