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Bank forecasts house price drop of seven per cent in 2023

Lloyds Bank says house prices are forecast to drop seven per cent this year. 

The bank - which is Britain’s largest mortgage lender through its Halifax, Bank of Scotland, Scottish Widows and Lloyds brands - says in a trading statement that its home loan volumes had dropped to between £1.1 and £1.2 billion a day, down from its more typical £1.5 billion a day. 

The bank has reported pre-tax profits of £6.9 billion for 2022, unchanged on the previous year and in line with exopectations.


However, it warns that it has allocated £1.5 billion to cover potential loan distress. 

Even so, Lloyds increased its bonus pot for bankers to £446m in 2022 - the highest amount since 2018.

In recent weeks the Nationwide has predicted a five per cent drop in house prices for 2023, while Santander put the forecast fall at 10 per cent.

Earlier this week figures from HMRC showed property sales volumes falling in January.

A non-seasonally adjusted estimate of the number of UK residential transactions in January is 77,390, some seven per cent down on  January 2022 and 27 per cent lower than December 2022.

Meanwhile the seasonally adjusted estimate of the transactions in January is 96,650, over 10 per cent lower than January last year.

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    Prices can drop 15%...20%...I'm still selling......before that decision is taken away..
    ..... Compulsory purchasing will be the next step

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    I'm thinking 10% as an average across the country.


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