The DTLR has published bidding guidance for the Starter Home Initiative (SHI) equity loan scheme.
Under the £20m scheme, 2,000 key workers outside London will receive £10,000 equity loans towards their first home.
The scheme will help 1,000 nurses and health care workers, 700 teachers, 220 police and 80 other key workers – including social workers, Prison Service staff and fire fighters – to buy homes in areas where house prices are high.
Announcing the publication of bidding guidance for the scheme, DTLR minister Lord Falconer said: “High house prices in some parts of the country have added to recruitment and retention difficulties.”
Bids are invited from registered social landlords, local authorities or employers to administer the scheme. Government grants will be paid towards administration costs.
Targeted areas are set out in the bidding guidance and allocations to successful bidders will be announced in May.
High cost areas in the South East, Eastern, South West and West Midlands regions will be targeted.
The allocation of £230m of the Starter Home Initiative budget, announced in September 2001, is already helping key workers to buy homes, claims the Government.
Funding for the £20m equity loan scheme will complete the allocation of the SHI budget of £250m, which is intended to help a total of 10,000 key workers over three years to 2004.
The scheme is run jointly by the Housing Corporation and DTLR.
EGi News 16/01/02
