The current property market could be seen as a “golden opportunity” for first-time buyers, according to Nathan Emerson, CEO at Propertymark.
NatWest chair Sir Howard Davies recently caused a stir by commenting that it is currently not “that difficult” to get on the housing ladder. Responding to the comments, Emerson acknowledged that saving for a home can be a “real struggle” for first-time buyers.
However, he added: “Whilst higher interest rates are normally an indication that inflation is still too high, they can benefit savers tremendously by encouraging them to save more, which should spur some first-time buyers to get their feet onto the housing ladder.
“House prices have started to drop from the spike seen on the back of the pandemic, so for some, this should be seen as a golden opportunity.”
Emerson insisted, however, that more needs to be done to help first-time buyers. “That is why Propertymark continues to encourage the UK government to implement measures that can help them,” he said.
A recent report by Yorkshire Building Society revealed that 2023 saw the fewest first-time buyers in the property market for a decade.
Despite this, last week the NatWest chair told BBC Radio 4’s Today programme: “I don’t think it is that difficult at the moment. You have to save, and that is the way it always used to be.”
He added: “I totally recognise that there are people who are finding it very difficult to start the process [of buying a property]. 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.”
Katy Eatenton, a mortgage and protection specialist at Lifetime Wealth Management, labelled the comments as “ludicrous” and “totally out of touch with reality”.
Ben Twomey, chief executive of the campaign group Generation Rent, said the comments were “astounding to hear from a senior banker”.
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