Key Worker Housing Schemes and Solutions to Help Get You on the Property Ladder

Could a Key Worker Housing Scheme be the key to helping you get a home of your own in the UK? These days, buying a property yourself isn’t easy particularly if you’re a single person. The average price of a home is now more than £260,000, and saving up for a deposit can take years.

Fortunately, the UK Government (and a few mortgage vendors) can offer a few housing schemes that actively prioritise supporting key workers throughout the nation. Key workers  include workers in Health and Social Care, education and childcare, Police Force, Fire Service, MOD and other key public services.

Here are just some of the options you can explore in 2024.

Key Worker Housing Options: Mortgage Deals

Before we look at some of the key worker housing options offered by the UK government, it’s worth noting that there are some mortgage providers who give special deals and discounts to key workers. For instance, the Taylor Wimpey company offers discounts of up to £15,000 on new homes for key workers, available in regions across the UK.

Barratt Homes also has a “Key Worker Deposit Contribution” scheme, where they add £1,000 (for free) to every £20,000 you spend on the purchase of a new property.

If, like most single people you’re struggling to save up for a deposit, or find enough cash for the home you want, it’s worth shopping around and checking out the available deals.

A mortgage broker should be able to direct you towards a lender that will give you more flexible benefits, tailor-made for someone in your profession. Just keep in mind you may need to pay for your mortgage broker’s advice.

Home Buy & Key Worker Housing Schemes

Probably the best-known key worker housing scheme introduced by the UK government was the “Key Worker Living Programme”, which offered key workers access to affordable home ownership options for key workers living in London. Unfortunately, this scheme was officially scrapped in 2019, but there are still some options out there to explore, such as:

The First Homes Housing Scheme

The First Homes Housing scheme, launched in 2021, allows people to access a discount on their home for at least 30% of the full purchasing price. Although virtually anyone can apply for this scheme, provided they can prove they’re on an income of less than £80,000 (or £90,000 in London), priority for discounts is given to local people, and key workers.

The great thing about the First Homes Scheme is that it can make buying your first property a lot more affordable, significantly reducing both your deposit amount and your mortgage payments. However, it’s worth remembering you’ll need to pass the same percentage discount you got for your home onto the next person who buys it.

If you need help learning more about the scheme, and how you can apply for it, you can visit the “Own Your Home website”, created by the government. This website also offers plenty of useful information on things like Shared Ownership, and the mortgage guarantee scheme.

The Mortgage Guarantee Scheme

The mortgage guarantee scheme, launched in 2021, replaces the “Help to Buy: Equity Loan” that previously offered borrowers in England the option to buy a home with just a 5% deposit, with a loan worth up to 20% of the property price. Notably, while the Help to Buy Scheme is no longer available in England, it’s still running in Wales (at least until March 2025).

The mortgage guarantee scheme, however, is still available, and allows you to purchase a property from an approved lender for a 5% deposit. Notably, the home you get needs to cost less than £600,000, and some mortgage lenders will prioritise giving this deal to key workers.

Shared Ownership and Social HomeBuy

Shared Ownership and Social HomeBuy aren’t technically key worker housing schemes, as they don’t focus exclusively on people with a specific job title. However, some councils and housing authorities will still give you preference if you have a key worker role.

With Shared ownership, you’ll purchase a portion of your house from a housing association and pay rent on the remainder. This basically means you can cut the cost of your deposit, your mortgage, and your rent. You can also gradually increase your stake in your property over time.

Similarly, the Social HomeBuy scheme allows tenants renting homes from Housing Associations or local authorities in England to buy a share of their home. Notably, there are specific criteria you’ll need to adhere to with this scheme.

For instance, you’ll need to ensure you have an assured tenancy policy, and that you’ve been a public sector tenant for at least three years.

Other Key Worker Housing Scheme Options

Outside of the three main key worker housing solutions mentioned above, there are a handful of other government schemes that might help you get on the housing ladder as a keyworker.

The Help to Build scheme, for instance, allows anyone living in England that meets the right criteria to apply for a loan to help them buy land or airspace for property development. You can also check out options such as:

  • The Lifetime ISA: An individual savings account which allows you to save up to £4,000 per year towards the cost of a home (or your retirement). This lifetime ISA benefits from a 25% cash bonus on everything you save each year from the government.
  • Home builders’ discounts: Some home builders will offer a discount (usually around 5%), on the cost of building a home for key workers. However, each company will have its own criteria for determining eligibility, so make sure you contact them in advance.
  • Right to Buy: The Right-to-Buy scheme gives you an opportunity to purchase your council house from the local council if you’ve been living in it as your primary residence for a certain length of time, like Social HomeBuy.

If you need more help finding affordable home ownership schemes, for key workers, and single people alike, you can find plenty of resources on the Gov.UK website. Plus, you can always consider speaking to your council, or housing association, as well as the Citizen’s Advice Bureau for extra information. Or, why not check out the other articles and guides on this website?

If you have any other information about key worker housing schemes, or special discounts for single people in certain professions, make sure you reach out and let us know!