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Workers priced out of housing market

 

Some of the worst places to buy a home
Many workers are priced out - and not just in London
Average earners have been priced out of the housing market in many areas of the country, according to a new survey.

New figures show that in 120 out of 171 counties and unitary authorities, purchasing a home is beyond an average man's wage.

Only seven authorities were within the reach of women.

Even sharing the responsibility of buying a home with a partner is unaffordable for many people on average earnings - out of reach in 59 out of 171 English and Welsh counties, according to the journal Labour Research.

Priced-out

While high prices rises are good news for property owners, the report illustrates the housing crisis affecting key workers, such as teachers and nurses.

The figures were calculated by comparing average salaries and average house prices by area, and assumed a 5% deposit and two workers on average earnings purchasing together.

Outside London and the South East the worst area in which to buy a home - for two people on average earnings - is Bath and North East Somerset, where house prices average £161,863 and salaries average just £21,732 a year.

A similar pair in Oxfordshire would be £40,457 short of the required funds while on in Rutland in the East Midlands would have a £37,509 shortfall.

In Windsor and Maidenhead, for example, the average wage is higher than in many areas of the country at £27,634, but with an average house price costing £250,556, even two people earning average incomes would £99,859 short..

Fare worse

The survey focused on a range of key workers, such as teachers, local government staff, childcare staff, nurses, along with other health and ambulance workers.

While in many areas all these key workers are priced-out of the market, there are wide variations.

In Poole in Dorset, for example, the average wage is £22,300 and the average home £143,588.

A secondary teacher would be just £2,433 short.

But childcare staff would be £86,450 short to buy a home.

Labour Research said: "The situation is indeed dire for lower-paid workers across the country."

 

 

E-mail Steve Margetts