2  Applicant eligibility

2.1 General

2.1.1 To qualify for housing under KWL at least one member of the household applying to participate in the scheme must be employed within a specified key worker group. There is no discretion to vary the terms of the allocation in this respect.

2.1.2 For participation in any HomeBuy scheme, an offer of employment is not sufficient.  

2.1.3 For intermediate rent schemes, where the applicant is moving into an area to take up an offer of employment, they may be assisted up to 3 months before the date employment is due to commence on condition that they take up employment on the agreed date.  Where available, the key worker should be required to provide a copy of their signed contract of employment.

2.2 Eligibility Criteria

2.2.1 Key workers eligible for assistance must fall within the key worker groups specified in the Grant offer letter. The following key worker groups are eligible for assistance under this programme:

• Clinical staff employed by the NHS (excluding doctors and dentists).
• Teachers, including FE teachers and Early Years/nursery teachers
• Police officers and community support officers in specified forces (please see sub-section 2.1.3) 
• Frontline police staff (civilians) may also be eligible in some areas (please see sub-section 2.1.3) 
• Prison officers and some Prison Service staff in prisons in specified areas (please see sub-section 2.1.3)
• Probation Officers, Senior Probation Officers, Probation Service Officers and, for intermediate rent only, Trainee Probation Officers
• LA/LEA/NHS Social workers
• LA Therapists (including Occupational Therapists and Speech and Language Therapists)
• LA Educational Psychologists
• LA/LEA/NHS nursery nurses
• LA Planners
• LA clinical staff
• Uniformed staff, below principal level, in Fire and Rescue Services.
• Connexions Personal Advisors
• Armed Forces personnel and some civilian MoD personnel (clinical staff, MoD police officers and uniformed staff in the Fire and Defence Service).  Also includes some discharged personnel.  Please see the guidance box at 2.2.5 for more information. 
• Highway Agency Traffic Officer Staff
• LA Environmental Health Officers/Practitioners
  

2.2.2 Within these broad groups, detailed criteria will be applied to determine eligibility, see para 2.2.5 below. 

2.2.3 These programme criteria may be amended from time to time by the Homes and Communities Agency in conjunction with the CLG. Scheme providers will be notified formally in writing of any amendments.

2.2.4 The eligibility criteria for a specific application will remain in place for six months from the date of written confirmation, even if the programme eligibility criteria change within those six months.

2.2.5 To be able to participate in the KWL programme all applicants must be employed in a qualifying post as listed (follow asterisk for full list) and must:  

 

• be unable to buy/ rent a home {suitable for their household needs LINK TO NBHB 1.4.3 Guidance} within a reasonable travel to work area of their employment.
• be permanent employees or be temporary employees where all the following conditions are met at the time of application:
  i. at least 6 months must be remaining on the contract;
  ii. the contract must have been issued at the outset for at least 12 months;
  iii. at least 3 months of the contract have already elapsed;
  iv. for HomeBuy the Equity Loan Provider is satisfied having regard to the applicant's skills, employment record and intentions that there is a reasonable prospect of continuing employment as a qualifying key worker sufficient to sustain home ownership in the longer term.   
• have a household income that does not exceed £60K (except for applicants who applied for the London Challenge Teacher programme prior to 1 April 2006 whose household income must not exceed £80K)
• be first time buyers or existing home owners who need to move home to meet their household needs.
• sell their existing property if they own one.
  

2.2.6 Intermediate Rent schemes

In addition to eligibility rules outlined above, there are further variations for intermediate rent schemes as follows:  

• Indefinite leave to enter/ remain is not necessary although there must be at least 6 months remaining on the key worker’s work permit at the start of the tenancy
• Key workers who have temporary contracts with at least 6 months remaining at the commencement of the tenancy are eligible and do not need to meet the further requirements in para 2.2.5 above in relation to the terms of their temporary contract.  Those on permanent contracts are also eligible for the intermediate rent scheme;  
• Trainee key workers with an employment contract are eligible for the intermediate rent, where they are undertaking ‘on the job’ training rather than training for a qualification that would enable them to become a key worker.

2.2.7 Properties must be purchased within reasonable travelling distance of the workplace. The Equity Loan Provider/HomeBuy Agent will determine what this is for the areas they cover and will consider each case individually. Where an applicant finds a property in a location covered by an Equity Loan Provider/HomeBuy Agent different to the one covering their place of work, zonal boundaries are not a relevant consideration and applicant details should be passed over as described in the Equity Funding Agreement.

2.2.8 Assistance through the scheme can only be given to those who could not otherwise buy or are unable/have difficulty renting a home at market rent that is suitable for their households needs (for Guidance refer to  NBHB 1.4.3) and within a reasonable ‘travel to work’ area of their employment. The definition of ‘travel to work’ area will depend on the locality, the type of employment and the transport links.

2.2.9 Where someone is looking to exercise an opportunity to purchase an alternative property to the one they currently own on a like for like basis, whether or not it was purchased with government assistance, this is only permissible in specific circumstances (please see OMHB chapter). There is no scope for the purchase of a more expensive home in a different area under this scheme, where current housing needs are met in the existing property.

2.2.10 For those looking to buy a home through one of the home ownership options, the total household income, capital and savings must be taken into account and while there is no set minimum income, Equity Loan Providers/HBAs and RSLs are required to be mindful of the purchasers ability to afford and sustain home ownership  in the long term. For Guidance refer to NBHB 6.2.1 

2.2.11  Applicants must not be:

1. in mortgage arrears or
2. in rent arrears or
3. in breach of their current tenancy agreement

at the time of the application. 

2.2.12 Where a tenant is or has been in arrears for a short period due to a sudden change in circumstances or an administrative delay or error in recording the rent paid to a public sector landlord, the Equity Loan Provider/RSL may use their discretion to allow the case to proceed where it is satisfied the rent is being paid and the applicant has sufficient income to support a mortgage.

2.2.13 In the case of private sector tenants, the Equity Loan Provider/RSL must be satisfied that the tenant has not had a history of rent arrears.

2.2.14 The maximum household income level for KWL is £60k.  Scheme providers  have discretion to accept applications from those with marginally higher  incomes in exceptional circumstances.   All such decisions must be seen to be fair to all applicants and transparent and fully documented for audit purposes.

2.2.15 Equity Loan Providers/RSLs must make reasonable checks to ensure that applicants meet the eligibility criteria for the scheme as per para 2.1.3. This should include documentation such as confirmation of employment status and sight of current/recent payslips. 

2.2.16 It will be for individual RSLs to ensure that they comply with the Data Protection Act 1998.  Personal data must be processed fairly and lawfully.  In order to be eligible under the scheme all applicants must give their consent in writing for personal data about their employment status to be processed by the RSL, Homes and Communities Agency, and Government Departments.  This will allow applicants eligibility status to be monitored whilst they are in receipt of assistance under the scheme. 

2.2.17  Tracking eligibility

For New Build HomeBuy and Intermediate Rent schemes the developing RSL must inform the employer (and the HomeBuy Agent) that a key worker is receiving assistance under the scheme. For Open Market HomeBuy schemes the Equity Loan Provider/HomeBuy Agent must inform the employer.

2.2.18 The employer will monitor the employment status of the key worker and notify the Equity Loan Provider/HomeBuy Agent/ RSL of any change in the eligibility status of the individual. Employers are required to keep the Equity Loan Provider/HomeBuy Agent/ RSL informed of any changes in the employees’ status.   

2.2.19  In addition the Equity Loan Providers/RSLs must undertake annual checks of the employment status of beneficiaries,

2.2.20 Equity Loan Provider/HomeBuy Agents are required to establish robust mechanisms whereby they are able to regularly review and confirm the qualifying employment status of key public sector workers and are able to implement speedy grant recovery procedures

2.2.21 The applicant is also obliged, under the terms of the legal charge to notify the Equity Loan Provider/HomeBuy Agent of any change in employment within seven days of the change. This requirement will also apply to New Build HomeBuy and intermediate rent tenants and will be contained in the legal documentation/ tenancy agreement.

2.2.24 Change of Employment

Where a keyworker, who has secured a property through the KWL programme, is looking to change jobs they must inform the HomeBuy agent or their landlord RSL 

2.3 Clawback

2.3.1 Up until March 2008 all key public sector workers accessing any of the HomeBuy products solely by virtue of their employment were subject to clawback. From April 2008 clawback no longer applies to OMHB and NBHB and documentation such as NBHB leases should be used.

2.3.1a RSLs should refer to NBHB section 7.8 for information relating to assigning existing KLW leases that contain the ‘clawback’ fundamental clause.

2.3.2 Also from April 2008, Key workers who are subject to clawback clauses in existing NBHB leases or OMHB legal charges will not be held to them.

2.3.4 All valuation fees are to be paid by the owner
 

2.4 Types of Assistance

2.4.1 Agency funding for a KWL scheme does not imply Agency endorsement of the type of assistance or any conditions attaching to it. It is the responsibility of the Equity Loan Provider/RSL/HBA, taking legal advice if necessary, to ensure that the type of assistance and all other aspects of its administration of the scheme, complies with all relevant legislation, is mortgageable, within its vires and that it has taken account of any tax implications both for the Equity Loan Provider/RSL/HBA itself, applicants and the applicants’ employers.

2.4.2 The amount of subsidy should be the minimum required to assist the key worker household into home ownership or to acquire a property suitable for their needs (for Guidance refer to NBHB 1.4.3.

2.5 Taxation

2.5.1 For guidance on tax and National Insurance contributions arising from the assistance provided to key workers under KWL follow the asterisk.  If RSLs require further guidance they must contact HM Revenue and Customs.  

 

2.6  Guidance for Applicants  

2.6.1  Guidance at para 2.8.6 below should be referred to together with any guidance produced locally by key worker employers. RSLs should also produce guidance for applicants which could include, for example, their detailed interpretation of 'travel to work' rules and, for first-time buyers, an indication
of outgoings and how these are likely to increase to ensure sustainable home ownership, implications of the clawback requirements.
 
2.6.2   When making equity loans Equity Loan Providers must ensure that promotional material complies with the requirements of the Consumer Credit Act 1974 (Please see OMHB 4.3.7).

2.7 Selection of Applicants 

2.7.1  RSLs must have clear written procedures for communicating with and selecting applicants. 
 
2.7.2  Applicants must complete the relevant application forms and have their eligibility assessed as required under NBHB/OMHB procedures (Please see NBHB 1.4). 
 
2.7.3   Equity Loan Providers/HomeBuy Agents and RSLs must ensure that the arrangements they make for administering the scheme provide protection for the public funds involved and facilitate effective programme delivery. 
 
2.7.4   Applicants must be selected in accordance with the priorities and criteria set out in the guidance to applicants. 
 
2.7.5 RSLs must avoid any conflict of interest for staff involved in selecting  applicants. 

2.7.6 The criteria must be clear to applicants and sufficient for providers to demonstrate at audit that those selected to purchase under the scheme met the priorities at para 2.2.5 above. The guidance should include:

• Eligible occupations and employers;
• Upper household income limits;
• Qualifying criteria as set out for each sector;
• Criteria used to prioritise applications. These may simply be date of application for those who meet the criteria or may be more specific, for example those whose specialisms are in particularly short supply. The criteria to be used must take account of the advice received from Department for Communities and Local Government (DCLG);
• The types of properties to be purchased, whether on a development or open market. If open market, an indication of acceptable size, values, locality and condition and any ineligible properties;
• Any tax implications arising from the assistance offered;
• Any resale covenants and other conditions and arrangements for repayment on resale and/or leaving qualifying form of employment;
• Information regarding the tenancy used for rented properties and indicative rent levels, together with the implications on leaving qualifying form of employment;
• Applicants should be required to certify that the information they have provided is complete and accurate and that they will not purchase more than one property through any schemes benefiting from public subsidy. They also need to certify that the property is their only home.

2.7.7 In order to minimise the tax implications of KWL assistance, employers must not nominate or prioritise applications from individual key workers, either formally or informally. Employers may indicate their general priorities for types of staff to be assisted under the
scheme and these priorities may be included in the Providers selection criteria. However, decisions on individual applications should be determined entirely by Providers without further reference to or advice from employers, apart from any checks required from employers in order to validate information provided on application forms submitted by key workers.