Britons have hit back at the claim it is “not that difficult” to get on the housing ladder, sharing their own experience of the property market.
NatWest chairman Sir Howard Davies today said “it’s not that difficult at the moment” when asked when it would be easier for people to buy a home in the UK. He added: "You have to save and that is the way it always used to be.”
Sir Howard did say he recognised there are people "finding it very difficult to start the process" and they "will have to save more", but said he thought that is "inherent in the change in the financial system as a result of the mistakes that were made in the last global financial crisis". Sir Howard has since clarified his comments, saying he "did not intend to underplay the serious challenges" of buying a first home.
Speaking to GB News reporter Anna Riley, a member of the public said: “I don’t think it’s easy to get on the property ladder. I’ve been lucky because I inherited my home from my parents.
“I think it would have been very difficult without that, because of a lack of finances and the cost of living crisis.”
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A homeowner told GB News he was "lucky" to have inherited is home and it would have been "very difficult" to buy a property
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He added: “I think it was easier before. I’m glad I’m not in my 20s or 30s now.
“Home ownership gives you a sense of responsibility and gives you something to leave to your children.”
Asked if he thought more should be done to build new homes and help first-time buyers, the man said: “Yes, I think so, because otherwise, people are going to end up homeless and on the streets.”
It came as property values were reported to have increased by 1.7 per cent on average across 2023, with the average home valued £4,800 higher than at the end of 2022, according to the Halifax house price index,
The typical UK house price in December 2023 was £287,105, up from £282,305 in the same month a year earlier.
Another man pointed out it’s not just younger people affected by the challenge to buy a first home.
He told GB News: I’m 52 and it’s been impossible for me to get on the property ladder. I think it’s very hard. A lot of people have to sleep in doorways these days.”
He added: “That gap between rich and poor seems to be getting wider.”
Asked whether he thought it was easier for previous generations to buy a property compared to first-time buyers now, he said: “I think some people think that in the 70s there was like a golden era – the country was getting back on its feet after the war, there was a baby boom situation, houses were comparatively cheaper.
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A man, 52, said he thought 'new starter homes start way out of most people’s budgets'
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“I think the key to it is married couples, building a home - like a nest – forever.
“Today a lot of people are single people. It’s not that they don’t have the same values, but it’s harder sometimes for people to co-habit, with the pressures of life. If you’re single, to me, there’s absolutely zero chance of finding a property [you can afford] or getting a mortgage.”
He went on to say he thought new homes should be “more affordable to the average family”.
He added: “They seem to start off at £250,000 and you think some people in the old days could buy a terraced house for maybe £3,000 and then maybe do it up and sell it and move up the property ladder that way.
“These new starter homes start way out of most people’s budgets.”
Campaign group Generation Rent criticised Sir Howard's comments. Ben Twomey, the campaign group's chief executive, said: “What planet does he live on? This is astounding to hear from a senior banker.
“We are in a cost-of-renting crisis that is making it incredibly hard for people to buy a home as we hand a third of our wages every month over to our landlord.
“Interest rates have increased but house prices have yet to correct, meaning we still need to save for a huge deposit, but also would need a high income to afford monthly mortgage repayments.”
Britons have insisted it's 'very difficult' to buy a house
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Howard Davies has this afternoon clarified his comments.
He said: “Given recent rate movements by lenders there are some early green shoots in mortgage pricing and while funding remains strong, my comment was meant to reflect that in this context access to mortgages is less difficult than it has been.
"I fully realise it did not come across in that way for listeners and as I said on the programme, I do recognise how difficult it is for people buying a home and I did not intend to underplay the serious challenges they face.
"People have to save much more than they did in the past and that is very tough for first-time buyers.
"The role for banks in today’s environment is to lend responsibly and support customers to build a savings habit and move towards home ownership.”