Brokers have criticised the government's key worker living scheme, arguing that it does not go far enough to help key workers meet the inflated property prices of the South-East.
The scheme offers several options including equity loans of up to £50,000 to help key workers buy a home on the open market or a new property built by a registered social landlord.
But Mark Osland, director of Croydon-based Fidelius, says this still leaves many properties out of reach of key workers. He says: “The more you can borrow yourself, the less the government will lend you. This makes it difficult to hit the kind of figures you need to buy a home, especially in the London area.”
Osland has been approached by three clients over the past few weeks wanting to take advantage of the scheme but none have been able to borrow enough to buy a property.
Trevor Youens, director of Reading-based IFA firm Flower, is supportive of the scheme but says borrowers may get a shock when they come to sell their properties.
He says: “If the property has appreciated in value by 30% since it was bought, the borrower will have to pay the government a sizeable sum when they come to sell. There is bound to be bad press when that starts to happen.”