NHS workers priced out as affordability gap widens

Many NHS workers are being priced out of homeownership with average first-time buyer properties now beyond reach in a growing number of UK cities, latest research from Boon Brokers reveals.

The study analysed NHS salary bands against average first-time buyer property prices across 15 major UK cities using a 95% loan-to-value mortgage model and a 5.5-times income multiplier.

It found that in many areas, even saving a deposit is no longer the primary obstacle, with mortgage affordability becoming the biggest barrier.

Liverpool, Newcastle and Nottingham emerged as the most affordable cities for NHS workers looking to buy their first home, while London, Bristol and Edinburgh were identified as the most challenging markets.

GROWING DISCONNECT

The research suggests that in most UK cities, NHS employees now need to reach at least Band 6 before they can afford an average first-time buyer property. In Manchester, Cardiff and Edinburgh, a minimum Band 7 salary is required, while Bristol only becomes affordable at Band 8a.

London remains the least affordable location, with average first-time buyer homes deemed unattainable even for NHS workers on Band 8a salaries.

The analysis also highlights the scale of mortgage borrowing shortfalls facing NHS staff. A Band 5 worker in London faces a borrowing gap of £234,925 when compared with the average first-time buyer property. In Bristol, the shortfall stands at £122,780, while those in Edinburgh and Manchester face gaps of £61,030 and £50,580 respectively.

The findings highlight the growing importance of specialist lending solutions, higher-income multiples and affordability innovation in supporting public sector workers onto the property ladder.

AFFORDABILITY RISKS

The report also raises questions about whether current affordability models adequately reflect the realities facing key workers in high-value housing markets.

Gerard Boon, managing director of Boon Brokers, said: “The data highlights that homeownership for NHS workers is increasingly determined by geography rather than salary progression alone.

“In many cities, even full-time NHS employees are unable to meet minimum mortgage affordability requirements for an average first-time buyer home.

“While lower-cost cities continue to offer opportunities for homeownership, average property prices in locations such as London, Bristol and Edinburgh have moved well beyond the reach of many NHS workers, despite stable employment and long-term career progression.”

The research found that, for many NHS employees, the challenge is no longer raising a deposit but securing sufficient borrowing power to purchase a home.