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| Version 3 | Version 4 |
|---|---|
| Property woe for public workers | Property woe for public workers |
| (about 13 hours later) | |
| Public sector workers such as teachers, nurses, police and firefighters cannot afford to buy homes in seven out of 10 UK towns, the Halifax bank has said. | Public sector workers such as teachers, nurses, police and firefighters cannot afford to buy homes in seven out of 10 UK towns, the Halifax bank has said. |
| Halifax arrived at its conclusions by dividing average regional property prices by average annual wages. | Halifax arrived at its conclusions by dividing average regional property prices by average annual wages. |
| It said property was most unaffordable in London and South-East England but property costs were also racing away from wages in other parts of the UK. | It said property was most unaffordable in London and South-East England but property costs were also racing away from wages in other parts of the UK. |
| The government said it had worked hard to help key workers buy homes. | The government said it had worked hard to help key workers buy homes. |
| Housing Minister Yvette Cooper said: "No government has done more to help key workers; since 1997 almost 25,000 key workers have got their first step on the property ladder through government shared equity and shared ownership schemes." | Housing Minister Yvette Cooper said: "No government has done more to help key workers; since 1997 almost 25,000 key workers have got their first step on the property ladder through government shared equity and shared ownership schemes." |
| Compare affordability for key workers across Great Britain | Compare affordability for key workers across Great Britain |
| Of 517 towns and local authorities surveyed by the bank, 363 (70%) were deemed unaffordable. | Of 517 towns and local authorities surveyed by the bank, 363 (70%) were deemed unaffordable. |
| The idea that they (health workers) can get on the property ladder is a non-starter for many Anne Mitchell, Unison Where next for house prices? Send us your comments | The idea that they (health workers) can get on the property ladder is a non-starter for many Anne Mitchell, Unison Where next for house prices? Send us your comments |
| Halifax defined a town as unaffordable if the average price of a house was more than 4.46 times the average wage of the workers - it is also the average multiple of income a first-time buyer pays for a property. | Halifax defined a town as unaffordable if the average price of a house was more than 4.46 times the average wage of the workers - it is also the average multiple of income a first-time buyer pays for a property. |
| While most unaffordable towns were in London and the South East, Scotland, the north of England and Wales were the parts of the UK with the most affordable towns. | While most unaffordable towns were in London and the South East, Scotland, the north of England and Wales were the parts of the UK with the most affordable towns. |
| But, even in those areas there are many towns where property is unaffordable. | But, even in those areas there are many towns where property is unaffordable. |
| House inflation | House inflation |
| In 2002, just over a third of towns were beyond the means of public sector workers looking to buy property, last year that figure rose to 65%. | In 2002, just over a third of towns were beyond the means of public sector workers looking to buy property, last year that figure rose to 65%. |
| FIVE LEAST AFFORDABLE PLACES Gerrards Cross, south eastKensington & Chelsea, LondonWeybridge, south eastSevenoaks, south eastWestminster, LondonSource: Halifax | FIVE LEAST AFFORDABLE PLACES Gerrards Cross, south eastKensington & Chelsea, LondonWeybridge, south eastSevenoaks, south eastWestminster, LondonSource: Halifax |
| This reflects a rapid rise in UK house prices, which have doubled in the last five years. | This reflects a rapid rise in UK house prices, which have doubled in the last five years. |
| At the same time, wages across the economy have been increasing ahead of inflation but not keeping pace with house price growth. | At the same time, wages across the economy have been increasing ahead of inflation but not keeping pace with house price growth. |
| In the past year, according to both the Nationwide and Halifax, average UK house prices have risen by about 10%. | In the past year, according to both the Nationwide and Halifax, average UK house prices have risen by about 10%. |
| Unions claim prospects for public sector workers may worsen in the near future as the government aims to limit wage increases to below the rate of inflation. | Unions claim prospects for public sector workers may worsen in the near future as the government aims to limit wage increases to below the rate of inflation. |
| FIVE MOST AFFORDABLE PLACES Lochgelly, ScotlandBellshill, ScotlandClydebank, ScotlandWishaw, ScotlandMerthyr Tydfil, WalesSource: Halifax | FIVE MOST AFFORDABLE PLACES Lochgelly, ScotlandBellshill, ScotlandClydebank, ScotlandWishaw, ScotlandMerthyr Tydfil, WalesSource: Halifax |
| "Health workers are effectively being given a pay cut and the idea that they can get on the property ladder is a non-starter for many," Anne Mitchell, spokeswoman for the Unison trade union said. | "Health workers are effectively being given a pay cut and the idea that they can get on the property ladder is a non-starter for many," Anne Mitchell, spokeswoman for the Unison trade union said. |
| "There is a real shortage of accommodation, both to rent and to buy, as hospital trusts have sold off a lot of on-site nurses' accommodation." | "There is a real shortage of accommodation, both to rent and to buy, as hospital trusts have sold off a lot of on-site nurses' accommodation." |
| However, public sector workers do enjoy some advantages over many private sector workers. | However, public sector workers do enjoy some advantages over many private sector workers. |
| They are often given preferential treatment by housing associations and have access to government sponsored shared-ownership schemes. | They are often given preferential treatment by housing associations and have access to government sponsored shared-ownership schemes. |
| Growing resentment | Growing resentment |
| Helen Adams, chief executive of self-help website, firstrungnow.com, has noted a growing resentment on the site's chatroom against public sector workers. | |
| READ THE FINDINGS Affordability for key workers by area [726KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here | READ THE FINDINGS Affordability for key workers by area [726KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here |
| "Many of my site users have a bit of a beef with public sector workers. They see them going to the front of the line in new developments and given a financial leg-up which is not available to them," Ms Adams said. | "Many of my site users have a bit of a beef with public sector workers. They see them going to the front of the line in new developments and given a financial leg-up which is not available to them," Ms Adams said. |
| "They recognise that they do a necessary job but feel left out... they would like something to be done for them too," she added. | "They recognise that they do a necessary job but feel left out... they would like something to be done for them too," she added. |
| But Ms Mitchell said that the advantages open to public sector workers were overplayed. | But Ms Mitchell said that the advantages open to public sector workers were overplayed. |
| "These shared ownership schemes are complex and you still have to find a large mortgage. The average nurse starts on £19,000 and has course debts of £5,500. Nurses are not able to move to expensive parts of the country," Ms Mitchell said. | "These shared ownership schemes are complex and you still have to find a large mortgage. The average nurse starts on £19,000 and has course debts of £5,500. Nurses are not able to move to expensive parts of the country," Ms Mitchell said. |
| She added that other workers in the health care sector, such as hospital porters and cleaners, are in a worse position as they earn less than nurses and are often unable to take advantage of shared ownership schemes. | She added that other workers in the health care sector, such as hospital porters and cleaners, are in a worse position as they earn less than nurses and are often unable to take advantage of shared ownership schemes. |
| % UNAFFORDABLE HOMES FOR KEY WORKERS BY REGION (Proportion of towns in which average home too expensive) All key workers Fire service Police Teachers Nurses Ambulance staff North 34% 93% 33% 37% 100% 63% Yorks 44% 98% 58% 58% 100% 44% North West 45% 96% 53% 58% 98% 45% East Midlands 82% 97% 82% 84% 100% 84% West Midlands 71% 98% 73% 78% 100% 85% East Anglia 89% 100% 89% 100% 100% 89% South West 100% 100% 100% 100% 100% 100% South East 98% 100% 98% 99% 100% 100% Greater London 100% 100% 100% 100% 100% 100% Wales 24% 95% 24% 52% 95% 71% Scotland 15% 90% 15% 46% 90% 50% Great Britain 70% 97% 72% 78% 99% 79% Source: Halifax | % UNAFFORDABLE HOMES FOR KEY WORKERS BY REGION (Proportion of towns in which average home too expensive) All key workers Fire service Police Teachers Nurses Ambulance staff North 34% 93% 33% 37% 100% 63% Yorks 44% 98% 58% 58% 100% 44% North West 45% 96% 53% 58% 98% 45% East Midlands 82% 97% 82% 84% 100% 84% West Midlands 71% 98% 73% 78% 100% 85% East Anglia 89% 100% 89% 100% 100% 89% South West 100% 100% 100% 100% 100% 100% South East 98% 100% 98% 99% 100% 100% Greater London 100% 100% 100% 100% 100% 100% Wales 24% 95% 24% 52% 95% 71% Scotland 15% 90% 15% 46% 90% 50% Great Britain 70% 97% 72% 78% 99% 79% Source: Halifax |
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