Investment bank Morgan Stanley is expecting UK house prices to drop 10% by the end of next year.
If that happens, it predicts that taxpayer-funded Lloyds will be the most exposed bank.
Analysts at the investment bank say in a report: “We still think that the UK housing market will see another leg of correction. Our central case is that UK house prices will be 10% below fourth-quarter 2010 levels by the end of 2012. Among UK banks, Lloyds is most exposed.”
Morgan Stanley think that Lloyds is likely to be worse hit by house price falls because of greater losses from its loans.
Over half (54%) of Lloyds lending is in UK mortgages, with the amount standing at £341bn last December.
Morgan Stanley’s analysts forecast that 27% (£90bn) of these loans will be in negative equity by the end of 2012.
Lloyds shareholders will not be delighted at the news. Their shares have been battered again after a £3.2bn hit over its mis-selling of insurance policies.
The Government has a 41% stake in Lloyds.
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Comments
ftb: Nope - I ain't missed the point at all. Your posts are mere socialist rants at the system. You openly despise those who stand to make a groat out of property - that's solely because you haven't been that lucky yourself.
Here's the fact you desperately need to face up to. LIFE'S TOUGH.
Homeowners are ALSO hardworking, you know - that's how they became homeowners in the first place!
Using abusive language (that you cannot even effectively asterisk out, you muppet...) on this site is clear evidence of your immaturity and lack of decency toward others (as if another sign was required...).
Get over it; get a life and a rented property - and grow up.
You said "That's all. I am n ot buying" So change your pseudonym while you are at it.
How about "CBWB" - can't buy, won't buy. I don't know for definite which category you fit in - but I reckon I can guess from your petty rants...
PeeBee. You're missing my point...hence you attack.
Prices are going down cos no one can afford them. Greedy ba*stards are trying to make money out of us hard working saving people by mass selling but they'll not succeed. That's all. I am n ot buying.
Everything now is really dire shit, what else is coming?????
ftb: Well - there speaks the voice of sa ity.
Sorry - my I and N buttons aren't working, apparently. Oh - they're back on again... ;o)
Bet The HPC Christmas Bash is a laugh-a-minute with you as the comedian...
Go on - say it, Woolfie:
POWER TO THE PEOPLE!!
Everything is going down, down down. We all know but keep pretending...
People are struggling with their day to day lives and the greedy ba*tards want to make money out of their miseries. Banks, btler's and gov.
The world may end up in another BIG war coupled with gobal warming and disasters....and you Ba*tards THINK $$$= houses? They are cards that fall and then you try to put them backup again but they still fall again and again and again.
Shame on you! For misleading the population.
Suppressing people for your own greed has already been demonstrated by the likes of Tunsia etc...
People will not succumb to your greed. Be warned.
Life's is too short and people are not stupid as you might think.
HPC.
Simon: You are not clearly not referring to the general market. BTLs that hit the market from failed hobby investors will be slashed like every other repo sale just to get rid. It is against the Law, by the way - but it happens nevertheless and no-one challenges it.
'Yer average' seller will not be swayed by these distorted sale prices. And as many of these fire-sales will never hit LR figures anyway, don't expect the numbers to moisten the HPC brigade!
You want to try to take advantage of a morsel? - then get in with the hoardes of investors who swim in the repo waters, waiting for the rich pickings.
You can join the small fish that fight over the leftovers that don't give the pro's good enough returns...
Lloyds bank has inherited a giant proportion of the buy to let market. This has been clearly recognised as the most vulnerable part of the housing bubble.
As prices fall it is buy to let landlords who will be the biggest sector repossessed and thus big loses for Lloyds.
I think this summer and Autumn we will see big price falls.
FF-S: "Indeed if the fall is less than 10% by this time next year I'll eat one of my boards."
ROSALIND - diary this one. Could be an interesting follow-up story... ;o)
All seems very plausible. HBOS really messed up big time.
Indeed if the fall is less than 10% by this time next year I'll eat one of my boards.
With mainstream property outside of London,I just can't see what there is to prop up prices. 10% plus I reckon.