LONDON (dpa-AFX) - NatWest Chairman Howard Davies received huge criticism after commenting that it is not 'that difficult' to get on the property ladder.
In a recent interview, when asked when it might be easier for Britons to purchase a property, Davies replied that, 'I don't think it's that difficult at the moment.' He further asserted that,' You have to save, and that's the way it always used to be.'
Davies's comments were also in response to a recent report by Yorkshire Building Society, which found that the number of first-time buyers who bought a property with mortgage fell to the lowest level in a decade in 2023.
The higher cost of living and inflation rates in U.K. had made it harder for the buyers to put aside minimum 10% deposit, typically required to purchase a property.
The senior banker further said in the interview that, 'I totally recognize that there are people who are finding it very difficult to start the process. They will have to save more. But that is, I think, inherent in the change in the financial system as a result of the mistakes that were made in the last global financial crisis, and we have to accept we're still living with that.'
The comments sparked a controversy on social media, with many calling him out as 'out of touch'.
According to figures released by Halifax, U.K.'s biggest mortgage lender, the average U.K. property currently costs 287,105 pounds which is equivalent to $366,357, while the average London home costs around 528,798 pounds.
As the backlash intensified, Davies issued a statement attempting to clarify his remarks. He stated that his comments were meant to convey that it had become easier to obtain a mortgage recently. He acknowledged the difficulties people face in buying homes and clarified that he never intended to undermine the challenges they encounter in the current housing market.
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