Now we know. On their current salary, young people – Gen Z - can quite easily buy a house in the UK. It’s not a big deal.
In the timeless words of NatWest Group Chairman Sir Howard Davies, "You have to save, and that's the way it always used to be." Easy, peasy, right? Banks aren’t out of touch, at all.
The aftermath of his seemingly tone-deaf remarks on the ease of purchasing a house in the current UK market is a masterclass in how not to discuss the housing crisis that effects many parts of the world. The NatWest executive faced a torrent of criticism, highlighting the glaring disparity between executive perspectives and the struggles of the average citizen in the turbulent property landscape.
"Save and Buy a House": A Reality Check
Sir Howard Davies, chairman of NatWest Group, recently offered his unsolicited lesson in financial wisdom during a BBC Radio 4 interview. When questioned about the challenges of getting on the property ladder, Davies casually remarked, "I don't think it's that difficult at the moment." Cue collective eye rolls and raised eyebrows.
In an era where property prices seem to defy gravity, The NatWest Group chairman suggested a straightforward solution, saving, saying “"You have to save and that's the way it always used to be."
Unsurprisingly, his comments didn’t sit well with those grappling with exorbitant rent and elusive property dreams. Presenter Amol Rajan's incredulous response summed it up perfectly: "Are we living in the same country?"
Younger Workers Calling for Salary Transparency
All this is unfolding against a backdrop where 8-in-10 younger workers have expressed a willingness to openly talk about their earnings at work. Gen Z and millennials, spearheading a push for salary transparency.
Now, before you scratch your head wondering if this is a good thing, if you’re not the boss, why isn’t it? If you’re the boss … let’s hope your pay scales make sense.
The close of all this is that younger workers – who will be in the workforce for a long, long time – have decided, rightly or wrongly, that they’re getting the bad end of the deal. So, much so that they’re starting to question just what income scales with social class these days.
What Is A Middle Class Salary?
@fmsmith319 Gen Z doesn’t agree 74k is middle class
♬ original sound - Freddie Smith
Case in point: Freddie Smith, a real estate agent, went viral talking about a Newsweek survey that surveyed 1,500 participants. The findings of which are telling—only 41% of Gen Z considers $74,580 a middle-class salary, showcasing a stark contrast with the perceptions of older generations. As the workforce leans towards openness, the clash between traditional financial perspectives and evolving expectations becomes all too apparent.
Watch this space. Don't be like NatWest.
