Homes 'becoming more affordable' for public sector workersTuesday, 26 April 2011 09:56
Key public sector workers should find houses more affordable now than during the pre-credit crunch property peak, according to latest research from the Halifax.
More than one in three towns in the lender’s survey has become affordable for the average nurse, teacher, police officer, fire fighter and paramedic since the third quarter of 2007, based on the house price to average earnings measure.
Currently, 38 per cent of towns are within key workers’ means, compared with just three per cent in 2007 – a 14-fold increase.
Firemen have seen the biggest change with an increase in affordable towns from just one per cent in 2007 to 28 per cent now.
Nurses have also seen a marked improvement, from seven per cent of towns being accessible to them in 2007, to 22 per cent in 2011.
Nelson is the most affordable town for key workers with a house price to average key worker earnings ratio of 2.1.
Unsurprisingly, the least affordable areas for key workers are all in London – Kensington and Chelsea, Westminster and Camden.
Nitesh Patel, housing economist at Halifax, said the change had come about through lower house prices combined with increased earnings.