LondonNet News Headlines
|Cash Boost for Public Sector London
- UKP250m in housing benefits to help stem key worker exodus
PUBLIC SECTOR workers who cannot afford to live in London are among those set to benefit from cut-price home ownership schemes and interest free loans.
UKP250m has been set aside to enable first time buyers to purchase a home in the capital. It is part of a UKP2.5bn boost for housing made available under Gordon Brown's three-year Comprehensive Spending Review.
The initiative stems from a fear that public service industries are unable to retain key workers as a result of escalating housing prices. This isn't surprising considering that the average house price in London is a whopping UKP185,000, and out of reach for the majority of working families.
Housing minister Nick Raynsford said: "We don't want to pump money in a way that pushes houses prices up. But we are determined to make home owner ship a reality for first time buyers in key jobs." Aids to buying a home are likely to centre around a UKP50,000 interest-free loan scheme.
Most of the rest of the UKP2.5bn will be spent on repairing ramshackle council housing over a period of 10 years and building 36,000 new homes for rent.
Meanwhile a survey from the Royal Institute of Chartered Surveyors showed that house prices in London fell between April and June, the first decline reported since 1998.