Up to 10,000 members of the armed forces and their families currently living in service housing in London, the South East and the East, will receive government help to get a first step onto the housing ladder.
Under the expansion of the government’s key worker programme, military personnel will be able to buy a newly built home, paying a minimum 25 per cent of the price and a reduced rent on the remaining cost of the home.
A further 2,500 military civilians, as well as those on operational deployments in countries like Iraq and Afghanistan, will also qualify for assistance.
Kelly said: “Our armed forces play a vital role in our public life and their local communities; this new support recognises that contribution. We know that in some areas of the country, service personal, like other key workers, have been priced out of the housing market. That is why we have put low-cost home ownership programmes in place, which have supported thousand of families to buy their own homes.”
More than 22,000 key workers have been helped into low-cost home ownership. The programme is helping people on average incomes to buy their own homes, with 64 per cent of those benefiting having household incomes of under £35,000. Once on the housing ladder, very few key workers reported difficulty in meeting their new housing costs.
Darren Pescod, managing director of The Mortgage Broker Ltd, said: “Anything that the government does to help key workers, or any other individuals such as a first-time buyers is great for the individuals concerned, the mortgage industry and the brokers behind the deals. I view it as a win-win situation for all. All we need now is a few more lenders to accept this type of mortgage so that we have greater choice for our clients.”
