New research from Halifax shows that the average house is unaffordable for key workers in at least 65% of towns (339 out of 519) across Great Britain. Only five years ago, the average house in only 126 (24%) of towns was unaffordable for all key worker groups surveyed.

The Halifax survey found that 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. Back in 2001, the average house was unaffordable in only five of the 34 towns in the region.

As expected, 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% recorded in 2001.

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.

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Key Points of the Report
- House price to earnings ratios for key workers are highest in London and the South East.
- Key workers have the lowest house price to earnings ratios in Scotland.
- Over the past five years, house price to earnings ratios have risen the most in the North, Wales, and South West.
- Affordability issues for key workers are least pressing in Scotland

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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.”

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In Detail:
Gerrards Cross is the least affordable town in Great Britain for key workers. The average price of a house in Gerrards Cross in the South East ranges from 17 times the average earnings of a Police Officer up to 30 times the average earnings for Ambulance Staff. Weybridge and Kensington & Chelsea are the next most unaffordable places in Britain. The ten least affordable towns are all in the south of England as are eighteen of the top twenty. The other two towns in the twenty least affordable areas are Wilmslow in the North West and Ilkley in Yorkshire.Lochgelly is the most affordable town in Great Britain for key workers. The average price of a house in Lochgelly in Scotland ranges from 2.5 times the average earnings of a police officer to 3.8 times ambulance staff earnings.

Flats & maisonettes are affordable for all key worker groups in 75% of towns (292 out of 391) across Great Britain. However, the proportion has fallen over the past five years with flats affordable for key workers in 93% of towns in 2001. In 2006 flats were unaffordable for all key worker groups in nearly two thirds of London boroughs and the cities of Edinburgh, Oxford, Cambridge and Bath.

Flats are least affordable for key workers living in London. The average flat in at least 64% (21 out of 33) London boroughs is unaffordable for key workers. Additionally, the average flat is unaffordable for nurses and ambulance staff in all London boroughs.

Flats & maisonettes are most affordable for key workers in Wales, East Midlands and the North. Teachers and police officers could afford the average flat in each of the six towns surveyed in Wales, all fourteen towns surveyed in East Midlands and all eighteen towns surveyed in the North.

Ambulance staff (excl paramedics) 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.

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 2006 97% of towns (503 out of 519) are unaffordable for a nurse.