Key workers in north benefit from falling property prices

Posted: 26 May 2009 09:39:22 GMT

Key public sector workers in the north of England are among the main beneficiaries of falling house prices, the conclusion of a new report suggests.

A study by Halifax found that although workers such as nurses, teachers and firefighters could afford to buy their own home in just three per cent of UK towns in the second half of 2007, the figure has now climbed to 21 per cent.

Yorkshire and the Humber, north-west England, Wales and Scotland now have house prices which are within the budget of key workers, while residential property values in the north-east and the Midlands are close to being affordable.

However, key public sector workers are unlikely to contribute to demand for homes for sale in London and across the south of England.

Halifax's housing economist Martin Ellis said: "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."

The report comes after a study by Halifax revealed that house prices fell by 3.3 per cent during the three months to the end of April, meaning the average cost of a home in the UK is now £154,716.

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