Findings from the lender revealed affordability for key workers was worst in the South West where the average house in all 34 towns surveyed was out of reach for all five key worker groups.
Greater London and the South East was the next most badly affected part of the country with 95 per cent of the towns and boroughs surveyed unaffordable for all key worker groups – up 36 per cent on 2001’s figures. Gerrard’s Cross was cited as the least affordable town in the UK, followed by Weybridge. Lochlelly in Fife, was the most affordable.
Commenting on the research, Martin Ellis, chief economist at Halifax, said: “Key workers have been hit hard by the strength of the property market over the past five years. Now it is difficult for them 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.”
Although flats remain affordable for key workers in many towns outside Southern England, the research found it has become increasingly difficult for them to purchase a flat in many major cities including Edinburgh, Oxford and Cambridge, as well as two thirds of London’s boroughs.
Ellis continued: “It is important the government continues to develop schemes to help key workers onto the property ladder and to ensure these schemes are not confined to Southern England.”
Peter Wright, financial adviser at CBK, said: “It is great that the government helps key workers onto the property ladder, especially those on low incomes. However, as well as continuing to develop schemes, the exact details of each separate scheme remain blurry and I think more should be done to promote awareness among financial advisers and the key workers themselves.”
