Key Worker Living Programme - 2004 (Keyhome Buy Scheme – Phase 2)

Report: 12
Date: 22 April 2004
By: Commissioner

Summary

This report advises the Committee of the terms and conditions of the MPA’s participation in the new Communities Plan which is to take forward the concept of the Keyhome Buy Scheme and broaden its access criteria. It also makes proposals for funding the MPA’s contribution to the Plan.

A. Recommendation

That

1. the Committee endorse participation in the Key Worker Living Programme (successor to the Keyhome Buy Scheme), noting the broader access criteria; and
2. approve the earmarking of residential sales (£2m in 2004/05 and £1m in 2005/06) in order to fund the MPA contribution to the scheme.

B. Supporting information

The Starter Home Initiative – MPA Keyhome Buy Scheme

1. Despite a slow start, the Scheme has been such a success that the Housing Corporation permitted the MPA’s housing association partners to exceed the original grant allocation of £15m. Although the Scheme has now closed, data is still being collated, but more than 700 MPS officers and staff will have participated in the Scheme. A separate information paper will be submitted at a later date that will summarise the current (phase one) Scheme’s outcome.

The Key Worker Living Programme

2. There are three strands to the Programme to which the MPA will have access for police officers and some police staff.

3. The first strand is similar to the Keyhome Buy Scheme in that applicants will be able to apply for a grant-funded loan of up to £50,000 to assist with house purchase.

4. The two new strands will enable applicants to apply to rent specific property at approximately 75% below its open market level or to apply for a traditional shared ownership purchase on specific property which is part owned and part-rented.

5. The Programme has been sponsored by the Office of the Deputy Prime Minister and will be administered through the Housing Corporation. The MPA’s participation is dependant upon making a financial contribution.

6. It is expected that the total fund of £9m will enable a further 180 police officers and staff to purchase their own home. The final number may vary depending upon the level of interest and take-up on the sub-market rent and shared ownership elements of the Programme.

C. Race and Equality impact

Participation in the Key Worker Living Programme will be subject to eligibility criteria, but otherwise will be available to all staff who meet the criteria (see Appendix 1).

D. Financial implications

1. It is proposed to provide funding of £2m in 2004/05 and £1m in 2005/06 for the two years that the Plan will operate. The ODPM would supplement the MPA’s contribution by a further £4m in 2004/05 and £2m in 2005/06.

2. It is also proposed that the MPA capital cost is funded from the sale of surplus residential quarters to achieve additional capital receipts over and above the £10m targeted for 2004/05 and £7m for 2005/06. To this end, the MPA’s capital contribution would require the sale of approximately twelve surplus quarters in 2004/05 and a further six in 2005/06.

3. Whilst this proposal requires funding from hitherto unidentified sources it should be noted that the capital programme funding has quite rightly been set at a conservative level. In the past four years actual capital receipts have always exceeded estimates as can be seen below:

*subject to final confirmation.

4. During the current financial year, residential sales are expected to realise approximately £9 million. Whilst residential sales would contribute to the achievement of the target in the 2004/05 and 2005/06 programmes, the proposed sale of other properties, such as Trenchard House, should also realise large receipts. Therefore, the MPA can reasonably expect to be able to raise sufficient residential capital receipts to fund the proposals in this report.

5. The revenue cost of the sales can be met from within the existing (pRPSD budget identified for this purpose and are estimated at £60k.

E. Background papers

• Office of the Deputy Prime Minister – Key Worker Living Programme 2004

F. Contact details

Report author: Alan Croney, Director of Property Services, MPS.

For more information contact:

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

Appendix 1

The Key Worker Living Programme

Eligibility criteria for MPS officers and staff

All police officers who apply must have been employed for a minimum of 6 months

The following police staff are also eligible to apply if they have been employed for a minimum of 6 months:

• Communications Officers
• Scientific Support Teams
• Crime Analysts
• Civilian Gaolers
• Station Reception Officers (except those employed at the following PFI stations Bromley, Lewisham and Sutton)

The maximum household income is £60,000 per annum

The maximum grant for an assisted purchase is £50,000

The grant/loan must be paid back within 2 years of ceasing to be employed by the MPS as a keyworker.

The grant/loan is available to those who are not first-time buyers but who wish to trade up.

The grant/loan can be carried forward to a new property and topped up if the original allocation was below £50,000.

Send an e-mail linking to this page

Feedback