Despite playing a very pivotal role during the crisis, most Covid frontline workers may find it difficult to own properties due to low pay.
Recent research has found that the low-paid “Covid heroes” will not be able to buy an average priced home in 98 per cent of Great Britain. The rising prices and frozen incomes will force the frontline workers to continue paying high private rents with no extra to save.
In recent weeks, Boris Johnson came under criticism for offering a 1 per cent pay rise to NHS “Covid heroes” which the Labour party described as a “disgrace”.
When the pandemic struck, many lenders withdrew low deposit loans making it difficult for low-paid workers to get mortgages.
A spokesperson for the Ministry for Housing, Community and Local Government said the government was “providing more support than ever before to help people on to the housing ladder”.
“First Homes, Shared Ownership, our £12bn investment in affordable housing, the Help to Buy scheme, and the new mortgage guarantee scheme will help many more people get the keys to their own home.”
Although the government intervened pledging to support lending at 95 per cent, borrowers will still need to prove their monthly earnings can allow them to repay before they can get a loan. This makes it difficult for the low-paid frontline workers who are faced with pay freezes.
Dan Wilson Craw, deputy director of campaign group Generation Rent, said: “Raising a deposit is just one half of the equation; you must also be able to afford the monthly repayments, and a 95% mortgage comes with a higher interest rate.”
A nurse on the median wage of £33,920 a year would not be able to afford to buy a median-priced property in almost three-quarters of local authorities nationwide. A senior care worker, applying alone will find it difficult to afford a mortgage in 98 per cent of council areas in Great Britain.