Nurses, teachers and police officers in Oxfordshire will benefit from a new Government initiative to provide key public sector workers with interest-free loans to buy their first homes.

Stephen Byers, Secretary of State for Transport, Local Government and the Regions, has announced details of a £250m starter home initiative aimed at helping 11,000 key public sector workers in areas with high house prices.

They will be eligible for interest-free loans of £10,000 to buy their first house, or will benefit from a Housing Corporation initiative to develop new, affordable homes for either rent or shared ownership. Nationally, 5,000 nurses, 3,500 teachers and 1,100 police officers are expected to benefit.

In Oxfordshire it is estimated that 131 nurses and health workers, 87 teachers, 36 police officers and 17 other public sector workers such as firefighters and social workers will take advantage of the package.

Mr Byers also wants to change planning guidelines to bring empty properties back into use.

He said: "With record numbers of people in work, there is a battle for talented individuals taking place between the public and private sectors. If we are to deliver high quality public services in areas like health and education, we simply cannot afford to lose this battle for talent.

"Dedicated and essential staff such as teachers and nurses should not be priced out of their chosen professions by high house prices in London, the South East and elsewhere.

"The need for affordable housing is a growing issue and I want to look afresh at our planning guidance. We need to make sure that empty properties are brought back into use as soon as possible."