Rachel Maclean, who served as Rishi Sunak’s housing minister until she left government in November, added: “His comments don’t reflect the reality for most young people today. We know that the age at which people are able to buy their first home is rising, and people are more reliant on family help to put down a deposit – which is clearly wrong for society.”
Sir Howard subsequently issued a statement through NatWest acknowledging that it is “tough for first time buyers”.
He said: “I do recognise how difficult it is for people buying a home and I did not intend to underplay the serious challenges they face.”
Sir Howard has come under intense criticism in recent months after Coutts, which is owned by NatWest, was accused of debanking the former Ukip leader and MEP Nigel Farage.
The scandal led to the resignation of Dame Alison Rose as chief executive, which came just hours after Sir Howard and the board had backed her.
She quit following revelations that she had disclosed controversial information about Mr Farage’s account at Coutts, a NatWest subsidiary, to a journalist.
Sir Howard is to retire from his role in April, having previously planned to leave the bank in July.
Asked how he felt about Dame Alison’s resignation, Sir Howard later said: “I don’t have feelings.”
Mr Farage told GB News on Friday: “This man is head of a bank with 19m customers – he couldn’t be further away from the centre of gravity of public opinion and he couldn’t be further away from his customers. The fact he’s still there as chairman is incredible.”
Sir Howard was formerly director of the London School of Economics but was forced to resign in 2011 after admitting the university’s reputation had “suffered” by accepting a £1.5m donation from Saif al-Islam, Colonel Gaddafi’s son.
The City grandee has held a string of prominent roles, including two years as deputy governor of the Bank of England and chairman of the Financial Services Authority.
