Lloyds Bank has warned that house prices could return to 2021 levels amid weakening housing market conditions.
High street lenders expect home prices to fall 7% this year as rising interest rates hurt homebuyer demand and the overall UK economy shrinks through 2023.
Lloyds Bank’s latest forecast is in addition to similar home price forecasts for Nationwide (-5%) and Santander (-10%).
Mr. Lloyds denied that a general housing shortage and a rebounding mortgage market would contribute to a crash in home prices.
Lloyd’s boss Charlie Nunn said: We focus on customers who are going to be shocked at their income. ”
He also highlighted the looming “mortgage shock” for 200,000 Royce customers by ending fixed rate contracts this year.
But Nunn is optimistic that fixed-rate mortgages are getting cheaper, and while he believes this will be a tough year for many, he said, “It’s not like the financial crisis, it’s the 20th century. It will be like the recession we saw in the early days.”
How much will house prices fall this year?
Daily news email from EYE
Enter your email below to receive the latest news straight to your inbox every morning.