£764,000-a-year banking boss criticised over claim 'it is not that difficult to get on housing ladder'

THE chairman of NatWest has come under fire for claiming that buying a home is not difficult even though the average property is now worth over eight times the typical wage.

- Graham Hiscott

Sir Howard Davies, who raked in £764,000 in salary and benefits from the banking giant last year, said first time buyers needed to save more.

His comments come as many battle to afford their first home.

Campaign group Generation Rent says it takes nearly 18 years to save for a deposit in London, with the average in England 10 years.

Figures from mortgage lender the Halifax also show the average home now costs £287,105. That is more than eight times the average that a full-time worker earns.

Sir Howard was asked on yesterday's BBC Radio 4 Today programme when it would become easier for people to get on the property ladder.

Risk

He said:"Well, I don't think it's that difficult at the moment."

It was put to him that it was hard for anyone under 40 to buy a home in a major city.

Sir Howard, 72, said: "Yes undoubtedly. What we saw in the financial crisis was the risk of having people being able to borrow 100% in order to get on the property ladder and then suffering severe falls in equity value and having to leave and having a bad credit record.