Tuesday, March 30, 2021

Whatever happened to the Tory nation of house-owners?

 Low-paid key workers would not be able to afford to buy the average priced home in 98% of Great Britain. Years of rising prices have put homeownership out of reach of many key workers, who have also experienced pay freezes and had to channel their wages into paying high private rents, rather than being able to save for a deposit.

Dan Wilson Craw, deputy director of campaign group Generation Rent, said: “Raising a deposit is just one half of the equation; you must also be able to afford the monthly repayments, and a 95% mortgage comes with a higher interest rate.”

The Guardian’s analysis, which was based on the sums needed for a 90% mortgage, found that a nurse on the median wage of £33,920 a year would not be able to raise a big enough mortgage to buy the median-priced property in almost three-quarters of local authorities nationwide. A nurse with a partner on the average wage would be locked out of the market in more than a fifth of areas.

 The median salary for a senior care worker in the UK stood at £21,243 in 2020. Based on these earnings, with a 10% deposit to put down, a senior care worker would be able to afford the average priced property in just six council areas in Great Britain, locking them out of 98% of areas. If this individual applied for a joint mortgage with a partner on the average UK salary of £31,461, the couple would be unable to afford the average property in four-in-10 local authorities across Britain.

A postal worker with a partner on the average wage would be priced out in more than one-third of local authorities. A postal worker earning the median income of £24,028 would be able to secure a mortgage on the average-priced home in just 13 local authorities

Bus drivers, even within a couple, they are unable to afford the average property in 31% of local authorities. A bus driver on a single wage of £27,191 would be priced out of nine-out-of-10 council areas.

  While a teacher could not afford a mortgage in 60% of areas across Britain. A secondary school teacher earning £40,881 – would be unable to afford a typical property in almost a fifth of council areas.

Covid frontline workers priced out of homeowning in 98% of Great Britain | UK news | The Guardian

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