Background

A prominent banker with a hefty salary has faced criticism for suggesting that buying a house is not a difficult task. Sir Howard Davies, the chairman of NatWest, made the controversial statement, asserting that all people need to do is save money, as it has always been the traditional way to purchase a home. However, his comments have sparked backlash, with Brexit leader Nigel Farage accusing him of being out of touch with the realities of the average person.

Soaring Property Prices

These remarks come at a time when property values are on the rise. According to the Halifax house price index, average house prices increased by 1.7% in 2023, with the average home now valued £4,800 higher than at the end of 2022. December saw a third consecutive monthly rise, with a 1.1% increase in average house prices.

Buying a Home is Not Difficult, Says Sir Howard

During an interview with the BBC, Sir Howard Davies was asked when it would become easier for people in the UK to enter the property market. He responded by saying, "I don't think it is that difficult at the moment." He emphasized the importance of saving, stating that this has always been the traditional method for buying a house. Sir Howard also mentioned that the financial crisis of 2008 led to stricter regulations on mortgage credit to protect against potential dangers.

Backlash and Accusations

Nigel Farage, a prominent figure in the Brexit movement, criticized Sir Howard for his comments, accusing him of being part of the "entitled elite" and disconnected from the real world. This backlash adds to the ongoing controversy surrounding the "debanking row," which involved former Ukip leader Mr. Farage revealing that Coutts, a luxury bank owned by NatWest, planned to close his account. The situation resulted in the resignation of former NatWest CEO Dame Alison Rose.

Expert Opinions

Brendan Clarke-Smith, a former Tory minister, acknowledged that housing affordability varies across the country. While he believes that housing is still relatively affordable in many parts of the country, he expressed sympathy for younger people in London and the south of England. Clarke-Smith suggested that the solution lies in building homes in high-demand areas and creating equal employment opportunities throughout the country.

In Conclusion

Sir Howard Davies' assertion that buying a house is not difficult has faced considerable backlash, with critics accusing him of being out of touch with the realities faced by many. As property prices continue to rise, the issue of housing affordability remains a significant concern for those trying to enter the property market.