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Under the proposals for the £1bn key-worker housing fund that will replace the Starter Home Initiative, the South-east, London and the east of England would be carved up into 14 zones. Each zone would have a designated lead association or consortium – a "zone agent" – that will act as a clearing house for key-worker applicants. It would be responsible for promoting the scheme, accepting applications and working with employers on behalf of the zone's other RSLs.

The zone agent would get a grant of up to £3075 per home sold for marketing costs.

The plan was part of the Housing Corporation's new approach to investment, unveiled on Tuesday (see "The road to development cash", below).

Four of London's biggest low-cost homeownership providers – Metropolitan Homeownership, Tower Homes, Notting Hill Homeownership and Boleyn & Forest – are considering whether to bid individually or as a consortium called Keys to the Capital.

Graeme Moran, director of home ownership for Metropolitan, suggested the zones be expanded to allow for key-worker mobility. He said: "You need a common platform and common database.

"A lot of key workers may apply in London and the South-east but their place of employment may be in a different zone. It's important that the databases connect."

Ingrid Reynolds, group director of property and new business at Notting Hill, said it would "be bidding to have a major role in the delivery of any future key-worker housing schemes."

Other changes to the programme include:

• Key-worker housing to be available for social workers and council planners as well as prison and probation staff, police, teachers and health workers subject to recruitment issues.
  
• The fund to cover intermediately priced rented housing, which could help workers from overseas, shared-ownership schemes and grants for new homes
  
• Grants of up to £100,000 – double the normal maximum – for some London teachers to allow them to buy family-sized homes.