Public Servant Lifestyle

The most radical package yet to help key teachers buy family homes in London has been announced by the DfES.

The most radical package yet to help key teachers buy family homes in London has been announced by the Department for Education and Skills (DfES).

The £1bn announcement is part of a wider package, unveiled by Deputy Prime Minister John Prescott, to provide affordable housing for key workers, including teachers.

The package for teachers in London is part of the Government’s drive to raise standards in the capital through the London Challenge, launched in May this year.

This package offers three schemes for teachers:

Bigger home loans for school leaders; a new Key Teacher Homebuy will provide equity loans between £50-£100k to teachers on the point of moving into leadership positions in London schools. This will be particularly useful for those teachers who are looking to purchase family-sized homes in London. 1000 leaders will benefit from this grant over the next two years

Bigger home loans; the existing Homebuy scheme will allow teachers to receive an interest free loan of at least 25% of the value of the property to enable them to purchase. There is a financial cap of £50k

Lower rent; teachers looking to rent will be able to access ‘intermediate renting’ properties from registered landlords at a level which is lower than the open market

Key Teacher Homebuy Scheme

The schemes are the latest boost for London teachers and follow on from the launch of the London Challenge in May this year. The London Challenge sets out a radical programme to transform schools and raise standards across the capital.

Secretary of State for Education Charles Clarke said: "Raising standards in London schools means recruiting the best teachers and then keeping them here. But many teachers can’t afford to buy a family home in the capital. Today’s radical package means they can.

"The Key Teacher Homebuy scheme is especially for key teachers and others who have the potential to become leaders of London's education system in the future. We know that quality leadership raises standards in schools and we want the best leaders to stay in London."

London Schools Minister Stephen Twigg said: "There is already much to be proud of in London’s schools, and there have been significant improvements in recent years. But there is still much more to do. We have excellent teachers in London but the high housing costs persuade many of them to leave the city after a few years teaching. Support for family homes will help retain more high quality teachers in London and transform standards of achievement by London students."

For the first time Further Education teachers have been included in the key worker initiative. Lifelong Learning, Further and Higher Education Minister Alan Johnson said: "This initiative offers an excellent opportunity for teachers working in FE. We now need to talk to the FE sector and work through details. The Department is already working with colleagues in the Learning and Skills Council and other key partners. We need to work closely together to ensure we satisfy the rules of the initiative to maximise potential."

The key worker initiative will also help teachers outside the capital, predominately in the South East, where high house prices are also a problem in some areas.

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