UK HOUSE PRICES TO FALL 7% THIS YEAR

A tumble in UK house prices this year has begun to look certain as the biggest mortgage bank forecasts a fall of 7%.

Lloyds Bank warns house prices are to fall 7% this year as customers struggle with mortgages on top of similar predictions from Nationwide (5%) and Santander (10%).

Lloyds CEO Charlie Nunn was talking as he unveiled profits of ￡6.9 billion for the year, which is flat on last year, though the fourth quarter was spectacular.

Profits for the last three months nearly doubled to ￡1.8 billion, figures that are unlikely to reduce complaints that banks are profiteering while interest rates rise.

CEO Charlie Nunn said, “20% of customers are having to take difficult decisions, cancelling subscriptions, moving towards value brands. We are focussing in on those customers who are going to have an income shock.”