114x114_fitbox-diy.jpegThe Halifax Key Worker Housing Review tracks housing affordability for five groups of public sector worker: nurses, teachers, police officers, fire fighters and ambulance staff (excluding paramedics).


The latest review shows that the average house is unaffordable for key workers in at least 65% of towns (339 out of 519) across Great Britain. Five years ago, the average house in only 126 (24%) of towns was unaffordable for all key worker groups surveyed.

  • Affordability for key workers is worst in the South West where the average house in all 34 towns surveyed is unaffordable for all five key worker groups. In 2001, the average house was unaffordable in only five of the 34 towns in the region. 

  • Greater London and the South East is the next most badly affected part of the country with 95% of the towns and boroughs surveyed (179 out of 189) unaffordable for all key worker groups - up from 59% (111 towns and boroughs) in 2001.

  • The South West has seen the biggest increase in the number of towns where the average house is unaffordable for all key worker groups over the past five years - a rise of 85 percentage points from 15% in 2001 to 100% in 2006. There have also been substantial increases in East Midlands (up 61 percentage points), East Anglia (52 percentage points), Yorkshire & Humber (51 percentage points), West Midlands (50 percentage points) and North West (47 percentage points).

  • Gerrards Cross is the least affordable town in Great Britain for key workers followed by Weybridge. Lochgelly in Fife is the most affordable town in Great Britain for key workers.

Martin Ellis, Chief Economist at Halifax, commented:

"Key workers have been hit hard by the strength of the property market over the past five years. Now it is difficult for key workers to buy the average house not only in the south of England but also in significant parts of the Midlands, northern England, Wales and Scotland.

While flats are affordable for key workers in many towns outside southern England, it is becoming increasingly difficult for key workers to purchase a flat in many major cities including Edinburgh, Oxford and Cambridge and two thirds of London's boroughs.

It is important that the government continues to develop schemes to help key workers onto the property ladder and to ensure that these schemes are not confined to southern England. The presence of sufficient key workers is critical to the smooth functioning of life in our cities and towns."


KEY FINDINGS


  • House price to earnings ratios for key workers are highest in London and the South East. In London, the average house price to earnings ratio for ambulance staff is 11.1 (i.e. the average house price is 11.1 times annual gross average earnings) and 9.5 for nurses. Fire services staff in the South East have a PE ratio of 8.5.

 

  • Key workers have the lowest house price to earnings ratios in Scotland.

  • Ambulance staff* are the key worker group with the most affordability problems. The average house in only four towns (1%) of the 519 surveyed across the UK is affordable for ambulance staff - three of these towns are in Scotland with one town in the North West . The average house price to earnings ratio for ambulance staff across the UK is 8.1 and 11.1 in Greater London.

 

  • Affordability has deteriorated most for nurses over the past five years. In 2001, the average house in 43% of towns (225 out of 519) was unaffordable for the typical nurse. In 200697% of towns (503 out of 519) are unaffordable for a nurse.

  • 72% of towns are unaffordable for teachers in 2006 compared with 33% of towns in 2001In 2001, the average house in 43% of towns (225 out of 519) was unaffordable for the typical nurse. In 2006 97% of towns (503 out of 519) are unaffordable for a nurse.