Housing Crisis in Cornwall: A Response to NatWest Chairman’s Astonishing Remarks

In Touch with Reality? Not for Many in Cornwall

In a recent interview on BBC Radio 4’s Today Programme, Sir Howard Davies, Chairman of NatWest, made a statement that has left many people in Cornwall scratching their heads. He claimed, “I don’t think it’s that difficult at the moment [to buy a house].” Ben Twomey, Chief Executive of Generation Rent, begs to differ and believes that Sir Howard’s perception might be a world away from the reality faced by many residents in Cornwall.

The Cost of Renting Crisis

Twomey’s response reflects the pressing issue of the cost of renting in Cornwall, which has reached crisis levels. For many individuals and families, a significant portion of their monthly income is handed over to landlords, making it a Herculean task to save for a home of their own.

Deposit Dilemma

While interest rates have risen, house prices have not seen a significant correction. This situation exacerbates the challenge of saving for a substantial deposit, further compounded by the need for a high income to manage monthly mortgage repayments.

Worsening Situation

Twomey points out that the housing landscape has deteriorated since the 2008 financial crisis. In 2012, it took an average earner 6.8 years to save for a deposit in England, but by 2023, this had surged to 9.6 years. During this time, the average price of a first home soared by 72%, and rents increased by 29%.

A Call for Action

Generation Rent argues that the blame should not be placed solely on mortgage regulations. Instead, they emphasise that it’s the government’s responsibility to control both rents and house prices. The solution, they say, lies in building more homes in desirable areas, particularly social housing, to alleviate rent pressures and allow renters to save more effectively.

Recognising the Crisis

The first step in addressing the housing crisis, according to Generation Rent, is acknowledging that a very serious problem exists. Cornwall residents have seen firsthand the challenges they face in securing a home of their own.

As the debate over housing affordability continues, it remains clear that for many in Cornwall, the dream of homeownership remains elusive. The gap between the property market and the reality of everyday people persists, leaving a pressing need for concrete actions to address this ongoing crisis.

Note: The information in this article is based on a press release from Generation Rent, and the statements made by Ben Twomey in response to Sir Howard Davies’ interview.

• Generation Rent’s latest research on saving a deposit was published in July 2023 and is available here: https://www.generationrent.org/2023/07/03/saving-for-a-mortgage-deposit-now-takes-a-decade/
• The 29% rent inflation figure is taken from the ONS Index of Private Housing Rental Prices which recorded a figure of 123.5 in November 2023 and 96.1 in November 2012.
• The relevant part of the interview begins at around the 2 hour 17 minute mark here