Home Property NHS nurses face house prices as high as 29.7 times their salary in parts of Britain

NHS nurses face house prices as high as 29.7 times their salary in parts of Britain

by LLP Finance Reporter
9th Dec 20 1:37 pm

The latest research by national estate agency, Keller Williams, has revealed the challenging task facing NHS nurses when it comes to climbing the property ladder, particularly when looking to buy close to a hospital.

Keller Williams analysed current net annual income and house prices to reveal the high house price to income ratio facing nurses both across the housing market as a whole, as well as within close proximity to a hospital.

Rishi Sunak has confirmed that NHS nurses won’t be part of the public service pay freeze and will receive a pay rise in 2021, although by how much is yet to be confirmed. However, whatever the increase is, it’s unlikely to bridge the current gap of £2,856 between the average annual net salary in Britain and the average yearly earnings of a nurse.

With the average person in Britain earning a net annual income of £25,246 versus an average property price of £247,466, the current house price to income ratio across the nation sits at 9.8.

However, for the average nurse, a lower annual net income of £22,389 sees this affordability ratio reduce with a house price to income ratio of 11.1.

This climbs even further to 11.7 when looking at the price of property surrounding hospitals across Britain, highlighting the tough task nurses face when looking to buy near their place of work.

London predictably presents the most formidable challenge for nurses attempting to climb the property ladder. The average house price to income ratio in the capital currently sits at 15.2. However, this rises to 18.9 for the average nurse and 29.7 when looking at property prices surrounding London hospitals.

The East of England is home to the second least affordable property market for NHS nurses. The average house price to income ratio for a nurse in the East of England currently sits at 16.1 to 11.7 for the average person, again increasing to 18.4 when considering property prices surrounding hospitals.

The South East, South West and West Midlands also rank high where property affordability issues for NHS nurses are concerned.

CEO of Keller Williams UK, Ben Taylor said, “To include key workers within the intended public sector pay freeze is quite a kick in the teeth given the events of the past year. However, our frontline army of NHS nurses probably deserve the greatest level of gratitude, and so it’s reassuring to see that they can expect a pay rise in 2021.

That said, it’s unlikely to address the current disparity in earnings between nurses and the average earner.

When you consider the impact this lower rate of pay has in any area of life, let alone the property market, it’s clear that our hard-working nurses are at a severe financial disadvantage despite the vital role they play.

This disadvantage is even more significant for nurses looking to live and work within the same area, with an already above average house price to income ratio climbing far higher in areas close to a hospital.”

Leave a Comment

You may also like

CLOSE AD