Lloyds TSB boss in house price warning

Sir Victor Blank, chairman of Lloyds TSB, today said he suspects house prices could fall by up to another 10% in 2009.

His view echoed that of rival banker John Varley, chief executive of Barclays, who warned prices could drop another 10%-15% in the coming year.

Blank also said he does not believe Lloyds, still in the process of taking over HBOS, will need more Government capital.

Last week HBOS issued a downbeat trading statement. Some analysts calculated it had lost
£2 billion in the last two months.

Between them, Lloyds TSB and HBOS have received £17 billion from the taxpayer.