The Office of the Deputy Prime Minister has announced a new ‘HomeBuy’ scheme which will benefit a wider range of key public sector workers and at the same time provide a greater number of affordable homes. The scheme as well as benefiting key workers, also includes some first time buyers and those living in social housing. The total package aims to help 100,000 households to own their own home by 2010.The Key Worker Living scheme will operate in the London, South East and Eastern regions. The definition of who qualifies as a key worker has been widened and now includes all clinical NHS staff, teachers in schools and further education, police officers and community support officers, uniformed staff in Fire and Rescue Services, prison and probation service staff, social workers, occupational therapists, educational psychologists, speech and language therapists, qualified nursery nurses, local authority employed clinical staff and local authority planners.
The Open Market and New Build HomeBuy schemes that will benefit public sector workers replace current shared ownership and equity loan products. Under the Open Market HomeBuy scheme purchasers will be expected to raiseb finance to purchase around 75 per cent of a home on the open market. A housing provider will provide a loan for the balance required. The New Build HomeBuy scheme will require a minimum initial purchase of at least 25 per cent of a newly-built home. A housing provider will hold the remainder of the equity.
On the sale of the property the buyer will receive a proportion of the proceeds commensurate with their equity share. The housing provider will receive the remainder. So, if a buyer originally purchased 75 per cent of their home they will receive 75 per cent of the proceeds when it is sold.