According to Richard Donnell, head of residential research at FPDSavills, the so-called 'key worker' housing affordability crisis is simply one of the many side effects of a market with deep seated structural problems. A scarcity of the right type of property in the right place forces up prices. 'It is important that the key worker issue does not become a red herring which diverts attention, and resources, from the fundamental problems facing the UK's housing market and economy; that is, a highly constrained supply of housing', said Donnell.

The report highlights that there is no single solution to the affordability problem and a number of parallel initiatives are needed. The Government's Starter Home initiative has been the main policy initiative to date, injecting £250 million ($355 million) over three years, and average subsidy of £25,000 ($35,500) per household to help around 10,000 key workers buy homes across the UK. However, £230 million ($327 million) of this funding has already been used in the first tranche of allocations alone. In London this is expected to help some 4,615 key workers. "This good start is small in comparison to the overall scale of the problem", said Donnell. "We have calculated, based on an anlysis of all household incomes, that up to 800,000 households in Greater London cannot afford property worth £75,000 ($106,500) or more. At a similar rate of subsidy it will cost up to £20 billion ($28.4 billion) to help all of those priced out of the market."

Whilst some funding will be required, the report concludes that it would be easier, and cheaper, if the response was to develop policies to build more homes. "Policies that facilitate the redevelopment of land for all types of housing are likely to be most effective in the long run", said Donnell. The analysis concludes that it will require a strong political will to combat the low-output house building borne of restrictive practices and policies. Conservative industrial practices as well as an inbred resistance to development in much of the population will also need to be addressed. Change will also need to be driven by innovative property development and higher production rates.