Where the ratio is below 4.0, housing is deemed affordable. In September 2007, homes in just 3% of UK towns – 12 towns in total – were affordable for key public sector workers, demonstrating a significant improvement since 2007.
Martin Ellis, housing economist at Halifax, commented:
"Housing affordability for key public sectors workers has improved significantly across the UK since house prices peaked in 2007. More than four in ten towns are now affordable compared with just three per cent in 2007. The greatest concentration of this improvement has been in northern England, Wales and Scotland. There are still considerable affordability issues for key workers in London and the South East.
"A combination of house price declines and growth in earnings has contributed to this improvement in affordability. However, house prices nationally have changed little in the past year, which together with pressure on public sector earnings, has resulted in only a modest improvement in home affordability for key workers in the past 12 months.”
Have your say on this story using the comment section below