Key workers priced out of housing


Key workers are being priced out of London and Southern England, with young workers in London paying over half their income on rent, says a report by consultants PricewaterhouseCoopers.


PwC’s latest UK economic outlook reveals the wide regional variations in the cost of private renting and the major affordability challenges facing tenants, with those working in certain key public sector professions being priced out of London and the South East.


The report shows that private rents in four regions — London, South East, South West and the East — are now considered unaffordable for workers on median wages.


Many key workers, including primary school teachers and nurses, face unaffordable rent levels in London and the South East. And tenants in London aged 22-29 are spending 53% of their income on private rents, decreasing the likelihood of being able to save for a house deposit.


Using the conventional benchmark that renting must cost less than 30% of gross annual income for it to be considered affordable, the report finds that an employee would need an annual salary of £23,800 to afford the median private rent in the UK, up £400 from 2017-18. This means that the country’s median private rent has just crossed over the 30% rental affordability threshold. 


The picture varies by region; Southern England, especially London, has rents considerably above this, making it extremely difficult for key professions such as NHS workers, teachers and police officers to live there.


https://www.pwc.co.uk/economic-services/ukeo/ukeo-housing-market-july-2019.pdf