London teachers to benefit from £1bn home fund

The education department has announced a £1 billion package to help teachers buy family homes in London.

The announcement is part of a wider package, unveiled by Deputy Prime Minister John Prescott, to provide affordable housing for key workers, including teachers. Today's funding for teachers offers bigger home loans for school leaders, and bigger home loans and lower rents for teachers.

The home loans package for school leaders will see equity loans of between £50,000 to £100,000 to teachers on the point of moving into leadership positions in London schools.

The existing Homebuy scheme will allow other teachers to receive an interest free loan, capped at £50,000, of at least 25% of the value of the property to enable them to purchase.

And teachers looking to rent will be able to access 'intermediate renting' properties from registered landlords at a level which is lower than the open market.

The schemes are the latest boost for London teachers and follow on from the launch of the London Challenge in May this year. The London Challenge sets out a radical programme to transform schools and raise standards across the capital.

Secretary of State for Education Charles Clarke said: "Raising standards in London schools means recruiting the best teachers and then keeping them here. But many teachers can't afford to buy a family home in the capital. Today's radical package means they can.

London Schools Minister Stephen Twigg said: "There is already much to be proud of in London's schools, and there have been significant improvements in recent years. But there is still much more to do."

(gmcg)