Sir Howard Davies, chairman of NatWest has said it is not “that difficult” to get onto the property ladder.
He told prospective buyers they have to save which is “the way it always used to be,” but yet the UK is in a cost of living crisis.
According to the Halifax house price index property values has increased by 1.7% on average in 2023 and the average home is now valued at £4,800 higher than what it was at the end of 2022.
Sir Howard was asked by BBC Radio 4’s Today programme when will it be easier for prospective house buyers in the UK to get on the property ladder, he said, “I don’t think it is that difficult at the moment.”
He added: “You have to save and that is the way it always used to be.”
Sir Howard continued, “What we saw in the financial crisis was the risk of having people being able to borrow 100% in order to get onto the property ladder, and then suffering severe falls in the equity value of their houses, and having to leave and having a bad credit record. So, there were dangers in very easy access to mortgage credit.
“I totally recognise 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.”
Leave a Comment