Improvement in housing affordability for key public sector workers

Housing affordability for key public sector workers has improved since house prices peaked in 2007 quarter three. Nearly one in six towns (18%) has become affordable for the average key worker since the summer of 2007, according to the Halifax Key Worker Housing Review.

Whilst the majority of towns remain unaffordable, one in five towns (21%) is now. calculated by Halifax to be affordable for key workers compared to only (3%) in 2007.

Employees in each of the five key worker groups analysed have seen improved affordability since 2007. The biggest improvement has been for police officers. More than one in three towns (37%) were affordable for police officers in 2009 quarter one compared with one in seven (15%) in 2007.

Martin Ellis, housing economist at Halifax, commented: "There has been an improvement in housing affordability for key public sector workers across many parts of the UK since house prices reached a peak in 2007. Nearly one in six towns has become affordable for the average key worker since then due to a combination of lower house prices and increased earnings. Despite this improvement, housing in the majority of towns remains unaffordable for the typical key worker.

Police officers and teachers have seen the biggest improvements in the number of towns where housing is affordable. Another striking feature is that all of the affordable towns are outside southern England, which means that key public sector workers are still heavily constrained in the housing market in the South."