Key public sector workers such as nurses, teachers and police officers cannot afford homes in over half of the UK's major postal towns, new Halifax research shows.

Previously, housing affordability problems for key public sector workers have largely been confined to London and the South East of England.

Now, house price rises in many towns mean key workers, on average wages, have to borrow higher multiples of their salary than most first-time buyers to buy a home.

The average house price in 504 (80%) of the 634 UK towns analysed is now in excess of £100,000. This has had a serious impact on key public sector workers. Of the towns analysed, 496 (78%) are unaffordable for nurses. Police officers cannot afford to buy a house in 400 (63%) of the 634 towns, whilst 390 (62%) are now unaffordable for teachers.

Shane O'Riordain, General Manager, Group Economics, commented:

“Buying a home is out of reach for an increasing number of key workers across the country. Our research shows the average UK house price is now almost six times the average UK salary for both nurses and firefighters.”

"In regions where affordability is an issue the recruitment and retention of key public sector workers will become more and more of a problem. The current scheme, whilst available throughout the country, is weighted towards London and the South East. Clearly it is sensible for the government to continue with the London weighting but consideration should be given to extending the scope of the scheme outside the south of England."

House prices by region (£)