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Dave Beans

House Price Falls 'aid' Key Staff

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http://news.bbc.co.uk/1/hi/scotland/8064729.stm

House price falls 'aid' key staff

Research by the Bank of Scotland has found that recent falls in property values could be a good thing for key public sector workers. It claimed workers such as teachers and police officers could now afford to buy in 39% of Scottish towns.

The same bank survey in 2007 said key public servants were priced out of all but 15% of towns. Nurses and firefighters were the key worker groups with the most affordability problems, the bank said. The average house in only 11% of towns across the Scotland is classed as affordable for these groups, according to the survey.

The most affordable town was said to be Grangemouth, with a house price to earnings ratio of 2.7, followed by Bellshill in Lanarkshire (3.0). Inverurie in Aberdeenshire was the least affordable town for Scottish key workers, with a ratio of 6.8, followed by Linlithgow and Tranent in East Lothian.

Martin Ellis, housing economist at Bank of Scotland, said: "There has been an improvement in housing affordability for key public sector workers across many parts of the UK since house prices reached a peak in 2007.

"A quarter of Scottish towns have become affordable for the average key worker since then due to a combination of lower house prices and increased earnings. "Despite this improvement only 11% towns across Scotland are affordable for all key worker groups."

The survey said Scotland was one of the most affordable areas in the UK.

__________________________

These bankers really are a clever lot, aren't they..

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...followed by Bellshill in Lanarkshire...

OMFG, I've BEEN to Bellshill.

Believe me, you really, really don't want to yourselves.

ED: Meh!

Edited by yellerKat

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thank god for "research"..

just how out of touch are these wonkers?

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You mean house price falls are a good thing?

Hang on, I'm writing this down.

Incredible, isn't it, that the property-obsessed media & public are just catching on to the fact that they don't need fanciful shared ownership schemes or liar loans...they just need cheaper homes. :blink:

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Inverurie in Aberdeenshire was the least affordable town for Scottish key workers, with a ratio of 6.8, followed by Linlithgow and Tranent in East Lothian.

Tranent is the third least affordable? How can this be?

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Incredible, isn't it, that the property-obsessed media & public are just catching on to the fact that they don't need fanciful shared ownership schemes or liar loans...they just need cheaper homes. :blink:

it's more a case of......"look, look housing affordability is now at levels not seen for atleast oh i don't know 4 years, now teachers and bobbies can afford to buy near to work so long as mummy and daddy can stump up some of the 25% required [no change there then].....now can you lot in the bleedin' heart brigade please leave our house prices alone."

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How dare they? People on average wages being able to afford properties? Absolutlely disgusting. Now lets have a 40% increase overnight and pillage those sorts of people again. The needs of BTL landlords are far more important.

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Incredible, isn't it, that the property-obsessed media & public are just catching on to the fact that they don't need fanciful shared ownership schemes or liar loans...they just need cheaper homes. :blink:

I wonder if it's just cyclical.

The previous generation of active media hacks bought their houses in their late 20, early 30s ten years ago. Saw them shoot up in value, bought BTLs, said "Isn't this great?" and broadcast that attitude.

You now have a generation of people below this who have either bought at top prices and lost or been priced out, tehy're in the media too and their attitude is "Isn't this rubbish" and that message is now getting out.

Lily Allen (in the latter camp) said how bad it was that it costs so much just to buy a house. The tide has turned.

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http://www.wandsworth.gov.uk/Home/Communit...okeyworkers.htm

Nurses, firemen, tecahers, social workers.

Basically all the frontline public sector staff who have done more work for the same money whilst their executives stick their hands in the till.

And the ones that the VIs wanted to lock out of home ownership forever. Bastards.

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It must take years and years of study and experience of economics and markets to come to a conclusion like this - I am in awe of these 'experts'.

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"A quarter of Scottish towns have become affordable for the average key worker since then due to a combination of lower house prices and increased earnings. "Despite this improvement only 11% towns across Scotland are affordable for all key worker groups."

Shame that the most important nugget of information is hidden right at the end of the article!

Where's Valerius? Rinoa? I would love to hear from them if "affordable for all key workers" is a good idea, or a crock of s**t. :lol:

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And if you read it carefully it has gone from 15% being affordable to just 11% being affordable (presumably due to wages falling?)

Dear BBC just which parallel universe are you living in that that becomes an 'improvement'?

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And if you read it carefully it has gone from 15% being affordable to just 11% being affordable (presumably due to wages falling?)

+1

So obvious, I completely missed it!

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In what sense should Police Officers (or Firemen come to that ) get preferential treatment for housing - surely someone working in the Private sector for an average wage without the benefit of a Public Sector pension or job security is just as much a `key worker` -particulary as the wealth generated by their labours helps generate the taxes neccesary to provide for Government employees ?

Anyway Coppers can`t be doing too bad - all the ones I know are heavily into BTL and one of the letting agencys where I live is owned by a syndicate of ex-Police Officers ...

Edited by Wires 74

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In what sense should Police Officers (or Firemen come to that ) get preferential treatment for housing - surely someone working in the Private sector for an average wage without the benefit of a Public Sector pension or job security is just as much a `key worker` -particulary as the wealth generated by their labours helps generate the taxes neccesary to provide for Government employees ?

Anyway Coppers can`t be doing too bad - all the ones I know are heavily into BTL and one of the letting agencys where I live is owned by a syndicate of ex-Police Officers ...

I think the issue is living near to work in expensive parts of the country esp. given anti-social hours.

"The ambulance will be with you in about 14 hours. Unfortunately they cancelled the late train and the driver can't get in until 7am tomorrow. In the mean time, here is some waiting music [cue: Vivaldi]"

There are often quite strict rules about how far and how long (in commute) you can live away from work. If you think of some of the more expensive parts of the country, you can see how having to live within 20 minutes of work would put you in a difficult spot. Then theres snow, being on 24 hour call, etc.

It isn't *that* crazy really. Actually, it used to be the case that some of these jobs carried tied housing as part of the deal which is why this seems like it has suddenly become an issue. Can you guess what happened?

Edited by Cogs

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http://www.wandsworth.gov.uk/Home/Communit...okeyworkers.htm

Nurses, firemen, tecahers, social workers.

Basically all the frontline public sector staff who have done more work for the same money whilst their executives stick their hands in the till.

It gets interesting when you add in the criticism that 'key workers' are now better paid when you compare public vs private salaries.

So if 89% of towns are unaffordable for 'key workers' and 'key workers' earn more...

Who is actually living in these damn towns?!

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In what sense should Police Officers (or Firemen come to that ) get preferential treatment for housing - surely someone working in the Private sector for an average wage without the benefit of a Public Sector pension or job security is just as much a `key worker` -particulary as the wealth generated by their labours helps generate the taxes neccesary to provide for Government employees ?

Anyway Coppers can`t be doing too bad - all the ones I know are heavily into BTL and one of the letting agencys where I live is owned by a syndicate of ex-Police Officers ...

Its an emergency measure, trying to get around the great big costly heffalump of speculated land price, which is getting in the way of our society operating. The clever way to deal with it is to arrange the economy so people cannot engage in real estate vampirism and so the costs inflicted by the owners of real estate are lower.

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It gets interesting when you add in the criticism that 'key workers' are now better paid when you compare public vs private salaries.

So if 89% of towns are unaffordable for 'key workers' and 'key workers' earn more...

Who is actually living in these damn towns?!

Comparing means without examining the distributions is the culprit here. Public sector earnings are very compressed. The floor is higher and the ceiling is lower (so say public sector haters anonymous, or the CBI as they like to be called). "On average" they are slightly ahead. But that just means, to illustrate, a nurse is a smidge over half way between a shelf stacker and an accountant in her earnings. Where do shelf stackers live and where do accountants live? Where would someone 10 quid a week past the middle live who doesn't have access to social housing?

What causes this to be paradoxical is that social housing is often pretty well sited as far as location (in terms of geographical proximity to services) is concerned. As per usual in this country, you are best being either very rich or very poor.

Edited by Cogs

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