A NatWest chairman, Sir Howard Davies, is facing criticism after suggesting that buying a home is “not that difficult.” With an annual salary of £763,000, Sir Howard’s comments have been seen as out of touch with the reality many people face when trying to get onto the property ladder. Brexit campaigner Nigel Farage accused him of being a member of the “entitled elite” who has no understanding of the challenges faced by everyday individuals.
Sir Howard’s remarks come at a time when property values have been on the rise, with an average increase of 1.7% reported across 2023. The average price of a home is now £4,800 higher than it was at the end of 2022, according to the Halifax house price index. Despite these escalating prices, Sir Howard maintains that the solution is simply to save, as it has always been.
The Impact of the 2008 Financial Crisis
Sir Howard also addressed the impact of the 2008 financial crisis on the housing market. He acknowledged that the crisis prompted measures to safeguard against easy access to mortgage credit. While he recognized that some individuals are finding it challenging to start their homeownership journey, he believes that the changes made in the financial system since the crisis are necessary.
A Controversial Move by NatWest’s Luxury Bank
During the backlash, Sir Howard was also questioned about the recent “debanking row.” Nigel Farage revealed that Coutts, the luxury bank owned by NatWest, had planned to close his account. This issue ultimately led to the resignation of former NatWest CEO Dame Alison Rose, who admitted her error in discussing Farage’s relationship with Coutts publicly.
Responses to Sir Howard’s Comments
In response to Sir Howard’s remarks, Nigel Farage criticized him, stating that he has no understanding of NatWest’s customers or the real world. On the other hand, Tory former minister Brendan Clarke-Smith offered a more nuanced perspective. While acknowledging that housing is still relatively affordable in many parts of the country, he empathized with younger individuals in London and the south of England, where affordability remains a significant concern. Clarke-Smith suggests that the key to addressing this issue is building houses where they are most needed and providing equal employment opportunities nationwide.
Sir Howard Davies’ comments have sparked a heated debate about the challenges of homeownership and the disconnect between high-ranking professionals and the everyday experiences of individuals. While some argue that buying a home is becoming increasingly difficult, others believe that careful saving and systemic changes can make it more attainable. Regardless, it is clear that this issue is a pressing concern for many in the UK.