U.K. house prices will fall by up to 10% this year, as higher mortgage rates and the broader cost of living crisis curtail home buying, Lloyds Bank CEO Charlie Nunn told CNBC on Tuesday.
"Our base case for 2023 is we will have a recession — a mild recession — GDP of about -0.1% this year, unemployment staying strong and that's more because of the constraints on the supply side, interest rates about 4% and a recovery coming into 2023," Nunn said on the sidelines of the World Economic Forum in Davos, Switzerland.
"The other challenge a lot of our customers are focused on is house prices and we do see house prices softening about 8-10% this year." The independent Office for Budget Responsibility forecast that U.K. households face their sharpest fall in living standards on record. As the head of the largest retail and commercial financial services group in the U.K., Nunn revealed Lloyds was seeing a "tale of two stories."
"First of all, there is a relatively small but really important group of customers with mortgages and also without who are going to struggle to make ends meet in the cost of living. That's about 1% of customers we can see in the U.K. and we really need to focus on supporting them," he said. "We're seeing a much larger set of customers having to adapt their spending and adapt to both higher costs of living and higher mortgage spend, but there still is real resilience in businesses, in households and in individuals at the higher income levels in the U.K. and strong spending we're seeing going through."
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
10 takeaways from Rockets' 10-game losing streakA look at 10 shortcomings and other takeaways of the 10-game losing streak.
Consulte Mais informação »
Solana Surpasses Polygon (MATIC) as SOL Becomes Top 10 Again$SOL reclaims top 10 spot from $MATIC after going 70% up in price in 2 days solana sol solanasol polygon polygonmatic matic
Consulte Mais informação »
Jaguars shock the world, defeat Chargers 31-30 and advance to divisional round of playoffsThe Jacksonville Jaguars (10-8) advanced to the divisional round of the playoffs after a thrilling come-from-behind victory over the Chargers (10-8).
Consulte Mais informação »
10 Things Not to Say to Trauma SurvivorsHas someone you care about been through a traumatic experience? Here's how you can be a healthy part of their recovery.
Consulte Mais informação »
10 auto industry predictions for investors to keep an eye on this yearCox Automotive's predictions for the U.S. auto industry point to a challenging year ahead.
Consulte Mais informação »
Inman: Top 10 things to catch my eye in 49ers’ playoff-opening rout of SeahawksHere are the top 10 things that caught 49ers beat writer Cam Inman’s eye in Saturday’s wild-card rout of the Seattle Seahawks.
Consulte Mais informação »