The government should consider the introduction of a mortgage deposit scheme to help teachers get on the property ladder, an education organisation has said.

The Fair Education Alliance (FEA) said such a scheme would incentivise teachers to make a long-term commitment to an area, which in turn would help reduce inequality in the UK's education system.

The FEA is an alliance of more than 50 members and supporters, including the National Association of Headteachers (NAHT), Teach First, and Save the Children.

According to its second State of the Nation Report Card, education inequality is still deeply entrenched in the UK.

The report outlines a number of policy recommendations for closing the gap between the poorest and more affluent students, including an overhaul of careers guidance, a mortgage deposit scheme for teachers and a greater effort by schools to promote the wellbeing and mental health of students.

The FEA says a mortgage deposit scheme would encourage teachers to commit long-term. Image by luxorphoto/Shutterstock.com

There should be extra support and networks for teachers, it said, and called for the government to trial the use of a mortgage deposit scheme to help professionals make the first step on the housing ladder.

This would incentivise high-performing teachers to commit to an area, the report said. 

The report comes as the Council for Mortgage Lenders (CML) said homeowners borrowed £8.7bn for house purchases in February – up 21% on February last year.

It was the most amount borrowed in the month of February for house purchases since February 2007, the CML said.

Government should trial the use of a mortgage deposit scheme to enable professionals to make the first step on the housing ladder

The Fair Education Alliance
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CML director general Paul Smee said activity in the buy-to-let market had been boosted by landlords keen to complete their purchases before the introduction of new rules earlier this month, which mean anyone buying a second home has to pay 3% stamp duty.

Since 1 April a 3% stamp duty charge is applied to anyone buying a second home.

Landlords borrowed £3.7bn in February up 61% year-on-year, according to the CML. 

Mr Smee said: “In 2016, there have been substantial increases in house purchase and remortgage activity year-on-year.

“This reflects the sluggish market in early 2015, perhaps driven by election uncertainties.

“Buy-to-let has also seen substantial year-on-year increases, with particularly strong growth in remortgaging, a pattern which we have seen in the buy-to-let sector the past six months.

“Activity has been boosted by landlords seeking to complete purchases before tax changes in April. We do not expect activity to show such strong year-on-year growth later in the year.”

The Council for Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK.

There are 11.1m mortgages in the UK, with loans worth more than £1.3tn.