Mortgage affordability improves for key public sector workers
Tue, 26 Apr 2011
The ability of key workers in the public sector to afford a mortgage has improved, new figures show.

However, house prices in the majority of UK towns are still out of reach to an average-earning key worker.

Research from Halifax reveals that that an additional 35 per cent of towns in the UK have become affordable to key workers since house prices peaked in the third quarter of 2007.

Key public sector workers can now afford to live in 38 per cent of towns, based on the house price to average earnings measure, compared to just three per cent in 2007.

But despite this rise, house prices in three out of five towns (62 per cent) are still beyond the reach of key workers on an average salary.

Nitesh Patel, housing economist at Halifax, said: "Over a longer period, the number of affordable towns in 2011 remains significantly lower than a decade ago. In 2001, two-thirds of towns were affordable compared to just a third today."

Meanwhile, separate research by Halifax has revealed that the monthly costs associated with buying a home are now lower than the cost of renting the same type of property .
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