CITYMATTERS.LONDON November 2020 | Page 15 PROPERTY subscribe to our newsletter at citymatters.london Public sector workers can’t afford mortgage New study shows 87% of British public sector workers cannot afford a mortgage in the same city they work AS public sector workers go above and beyond the call of duty, a new study has been conducted into whether people working those jobs could afford a mortgage, and where in the UK would be most feasible. After looking at average annual salaries for all public sector roles, along with property price averages across the UK, the results from OnlineMortgageAdvisor.co.uk have been revealed. Across all eight chosen public sector professions (NHS GP Doctor, Firefighter, Police Officer, Social Worker, Secondary School Teacher, Primary School Teacher, NHS Nurse (Registered Nurse), and Military Soldier) none were able to afford a mortgage in London. Even though the London weighting allowance was added to these front-line workers, they were still unable to buy a London property. However, researchers also factored in the fact that mortgages are usually achieved with a second income. Finding the average London salary of £34,473, they used this to determine the potential for a joint mortgage and still it proved unattainable. Based on their income alone an NHS GP was the only public sector profession that could afford a mortgage within the UK. With an average annual salary of £64,999, an NHS GP could afford to live in seven out of 11 regions in the UK. These included the West Midlands, East Midlands, North West England, North East England, Wales, Scotland, and finally Yorkshire and The Humber. Yet, the other seven key workers could not afford to live in any of the regions listed. The only way these front-line heroes could afford to have a mortgage is by living with a significant other. NHS GP doctor The take-home for a NHS GP and their partner would be an average of £94,599 making them the highest income earners for all eight selected SOME OF THE WORST OFF: NHS nurses are in one of the worst financial positions. public sector workers. Therefore a NHS GP was able to afford mortgages across all nine regions. Firefighter After extinguishing blazing fires and rescuing civilians from dangerous situations, firefighters have a potential household earning of £61,308, leaving them able to buy within seven regions across the UK. Police officer After keeping our streets safe, police officers come in third place with a joint average potential income of £59,594, granting them properties in the West Midlands, East Midlands, North West of England, North East of England, Wales, Scotland, and Yorkshire and The Humber. TEACHING VALUE: the only way teachers can afford to buy in London is with the help of a partner. Social worker Social workers follow closely behind with an average household income of £59,437, permitting them properties in the same areas. Secondary school teacher Secondary school teachers are the last public sector workers to afford seven regions in the UK, with a joint potential income of £59,244 on average, meaning they can afford properties in the West Midlands, East Midlands, North West of England, North East of England, Wales, Scotland, and Yorkshire and The Humber. Primary school teacher Our early learning educators come in sixth place with a household earning of £56,244. They can subsequently afford a mortgage in the East Midlands, North West of England, North East of England, Wales, Scotland, and Yorkshire and The Humber. NHS nurse After braving the front-line over the past six months, NHS nurses come second to last with an average household income of £54,706. The extra £4,706 allows NHS nurses to buy in one more region than military soldiers. Military soldiers They may be protecting and keeping us safe, but our soldiers are unfortunately at the bottom of the mortgage affordability list with an average earning of £50,139 if applying with a partner, allowing soldiers to only afford properties in the North West of England, North East of England, Wales, Scotland, and Yorkshire and The Humber. If you can hold on, don’t sell up now IF you can hang on, don’t sell now, says lettings and property management business Herddle. Analysis shows that most London homeowners would make a loss compared to what they could have gained this time last year. Only South West London has shown a rise (of 4%). The outlook is similar in all parts of the capital. Corey Cummins, CEO of Herddle, said: “London house prices have continued to fall and demand may well fall too. That leaves would-be sellers in a precarious position. Selling your home now means potentially taking a hit (prices are expected to drop by a further 1% in 2021) and seeing demand decrease over the next six months. “With the private rental market set to grow to a quarter of the UK housing market in 2021, demand is only increasing. In the capital, that number is even higher, with 60% of London residents set to account for private renters by 2025. “That’s why many landlords are choosing to stick, hold on to their assets and use highquality property management to achieve a regular income stream and take care of their portfolio. Then, once the world resumes normality, the property market will be stronger after the changes accelerated by Covid.” North East London Average house prices in the north east of London currently sit at £588,848, down 9.8% from the previous 12 months. Overall, homes in northeast London lost just under £60,000 of their value. North West London The current average house in north London is £950,453, which is a 6.4% drop from 12 months ago. Prices in northwest London are generally swayed by high-value areas like Hampstead, Camden and Islington. West London Property prices are by far the highest in west London, with the average home valued at £1,026,175. However, just like the rest of the capital, they’ve seen a dip. West London properties have fallen by 1.39%, which equates to minus £14,408. Central London Central London is the super-prime hotspot of the capital, but it’s taken a hit in recent years. The average property price currently stands at £1.3m, which is a value change of minus £143,452 over the last 12 months. House prices have fallen by 9.9%. South West London Southwest London is the only part of the capital that has seen an increase in house prices over the last 12 months. Homes have increased 4% to an average of £934,798. South East London House prices in south London tend to be lower than the north of the capital, especially in southeast London, where the sales market has struggled recently. The current average value is £497,999, which has seen a 6.07% drop in the last 12 months. East London East London is performing even worse than the south of the capital, with house pricing falling by 9% in the last 12 months. Property values currently sit at £447,764, which is a drop of £49,169.
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