High street lender Santander has warned house prices are set to tumble back to 2021 levels, and set aside more cash for bad debts as it braces itself for a possible rise in borrowers falling behind with repayments.
The Spanish-owned group is pencilling in a 10% fall in house prices this year as interest rate hikes knock homebuyer demand and a 1.3% contraction in the wider UK economy over 2023.
