Eligibility Criteria, Keyhome Buy Scheme – Starter Home Initiative

Report: 15
Date: 10 July 2003
By: Commissioner

Summary

The eligibility criteria under the Key Homebuy Scheme is currently restricted as priority is only given to those civil staff who occupy posts that are deemed to support operational policing. The take up of funds available under the Scheme enables this restriction to be more liberally interpreted in its last year, which would enable more civil staff to apply successfully if their applications meet the Scheme’s other eligibility criteria, as these will remain unchanged.

A. Recommendation

1. The eligibility for civil staff under Key Homebuy Scheme should be significantly eased in order to achieve the ratio of police to civil staff originally envisaged.

B. Supporting information

1. In September 2001 the MPA’s bid for an allocation of funding under the Starter Home Initiative was successful and an award of £15.3m was made, subject it being taken up by 31 March 2004.

2. Members approved an implementation plan called the “Key Homebuy Scheme” that was prepared in conjunction with four housing association partners.

3. The Scheme was constructed to enable the MPA to assist approximately 350 police officers and 125 civil staff, which reflects the ratio of police to civil staff.

4. The funding is paid through the Housing Corporation each time an applicant who has been accepted onto the Scheme purchases a property. The funds do not pass through the MPA.

5. Staff make applications direct to the appropriate housing association partner where they are considered in the context of the eligibility criteria that members have set down. The current criteria are at Appendix 1. The Scheme is administered and co-ordinated by the main partner, Tower Homes.
6. At a national level the Starter Home Initiative is not yet fully meeting its objective, which broadly is to assist 10,000 key workers such as, nurses, teachers and police. The current take-up has only funded just over 2,600 key workers.

7. Members were advised last February of the broad marketing that has been undertaken in the MPS and the subsequent take-up by the eligible staff. Details of the marketing are set out in Appendix 2. The latest number of applicants who have been accepted on to the Scheme and have either identified a property or have completed are 255, of which 239 are police and 16 are civil staff. A total of 193 properties have been purchased resulting in a grant commitment of £4.68m (averaging £24,380 per property). . Members should note that this position is not significantly different from the last update report that went to Committee in May 2003 and still falls short of the targets set out at paragraph 3. However, the maximum allocation allowable under the scheme has just been revised to £50,000 and this may favourably affect take up of the scheme.

8. As there are just 9 months to go before the Scheme expires current projections predict that the funding allocated to the MPS is unlikely to be fully used. When the Scheme closes any applicant whose purchase has not completed will no longer be able to receive a grant. In practical terms this means that only those applicants who have identified a suitable property and instructed solicitors by about mid-winter 2003/04 will have a reasonable expectation of completing by 31 March 2004.

9. Therefore the Scheme’s eligibility criteria should be widened in order that the allocated funding is fully utilised in time and that the ratio of police to civil staff originally envisaged can be achieved. The criteria at Appendix 1 already provides for additional civil staff posts to be designated as eligible and it is recommended that this be given a more liberal interpretation. The additional civil staff posts are currently being identified.

C. Equality and diversity implications

1. The Key Homebuy Scheme is open to all staff who meet the eligibility criteria.

D. Financial implications

1. The administration cost of £1,600 (inclusive) for each completed purchase is funded from the overall grant of £15.3m. The Scheme’s target number of completed purchases reflects the administration cost and the associated reduction in total funding availability.

E. Background papers

• Residential Estate Strategy
• Key Homebuy Scheme – Starter Home Initiative (Update)

F. Contact details

Report Author: Alan Croney, Director of Property Services and Michael Shurety, Director of HR Services, MPS.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

Key Homebuy Scheme

Current selection & allocation criteria

General criteria to qualify for Key Homebuy:

• you must be able to raise a mortgage or have the savings to pay for your share of the price of the home you want to buy
• you will usually be a first time buyer

You will not qualify for Key Homebuy if:

• you can buy a home without the help of a Key Homebuy loan
• you have had rent arrears during the last 12 months or are in breach of your current tenancy agreement
• you cease to work for the police service before you complete your purchase
• you are employed through an agency or are on a contract basis or only have an offer of employment
• you have an adverse credit history
• your household income is in excess of £42-£45,000 a year.

All applications will be considered, but currently priority will be given to:

• a member of the Metropolitan Police Service (police or civil staff) who has been in post for 6 months or more
• person currently renting accommodation from either a Local Authority or Housing Association and who will surrender that tenancy on receipt of the grant
• a police officer transferring from another constabulary who cannot be housed in Metropolitan Police quarters
• Priority for Civil Staff members will be given to those who are:
  • Communications Officers
  • Civilian Gaolers
  • Crime Analysts
  • Photographers
  • Scientific Support Team
  • Station Reception Officers
• such other civil staff posts as shall be designated by the Director of HR which either release officers for street duty or are deemed ‘hard to recruit’.

1st Edition
September 2001

Appendix 2

Key Homebuy Scheme

Marketing campaign details

The Key Homebuy Scheme has been promoted to staff across the MPS through the following media:

including:

• Personal Mailshots to all staff in September 2002, December 2002, February 2003, April 2003 with another scheduled for July 2003.
• Adverts placed in The Job Newspaper in May 2002, January 2003 and March 2003. Individual success stories reported in The Job
• Posters (including updates) advertising in MPS buildings from September 2002 onwards.
• Leaflets (including updates) sent to canteens from September 2002 onwards.
• Briefings to Personnel Managers on 16, 23 and 30 September 2002.
• Published on the intranet in October 2002.

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