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| Version 3 | Version 4 |
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| UK house prices 'to fall by 30%' | UK house prices 'to fall by 30%' |
| (about 2 hours later) | |
| The head of Barclays bank has predicted that economic gloom will deepen, with house prices to fall in total by 30%. | The head of Barclays bank has predicted that economic gloom will deepen, with house prices to fall in total by 30%. |
| John Varley's warning comes ahead of the latest UK unemployment figures on Wednesday, where the number of jobless is expected to rise sharply. | John Varley's warning comes ahead of the latest UK unemployment figures on Wednesday, where the number of jobless is expected to rise sharply. |
| A new survey suggests household debt is on the increase, and the value of sterling has fallen against the euro. | A new survey suggests household debt is on the increase, and the value of sterling has fallen against the euro. |
| House prices have already fallen by 15% this year, and his remarks suggest they may fall at the same rate next year. | |
| John Varley, group chief executive of Barclays, painted a bleak outlook in an interview on Sky News, during which he criticised mortgage borrowing levels over the last decade. | John Varley, group chief executive of Barclays, painted a bleak outlook in an interview on Sky News, during which he criticised mortgage borrowing levels over the last decade. |
| I think an additional 700,000 people unemployed over the course of the next 12 months is certainly possible to contemplate John Varley class="" href="http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm">UK house prices in detail | |
| He warned the UK was only "halfway" through the slump with house prices set for even greater falls. | He warned the UK was only "halfway" through the slump with house prices set for even greater falls. |
| He said: "Our view was that from the top to the bottom, you would see a fall of something like 25 to 30%. | He said: "Our view was that from the top to the bottom, you would see a fall of something like 25 to 30%. |
| "I suspect we're about halfway through that at the moment. I mean that slowdown, the negative house price inflation started in 2007, it's accelerated in 2008. | "I suspect we're about halfway through that at the moment. I mean that slowdown, the negative house price inflation started in 2007, it's accelerated in 2008. |
| "We're probably about halfway through that period, so in other words we've got another 10 to 15% to fall between now and the end of next year. That would be our assessment." | "We're probably about halfway through that period, so in other words we've got another 10 to 15% to fall between now and the end of next year. That would be our assessment." |
| His bleak prediction extended into the jobs market. | His bleak prediction extended into the jobs market. |
| He said: "Our view is that unemployment will rise. Unemployment is likely to go north of 7% over the course of the next 12 months or so, it might be as high as 7.5%. | He said: "Our view is that unemployment will rise. Unemployment is likely to go north of 7% over the course of the next 12 months or so, it might be as high as 7.5%. |
| "I think an additional 700,000 people unemployed over the course of the next 12 months is certainly possible to contemplate." | "I think an additional 700,000 people unemployed over the course of the next 12 months is certainly possible to contemplate." |
| Mr Varley was speaking ahead of the release, on Wednesday, of the latest UK unemployment figures. | Mr Varley was speaking ahead of the release, on Wednesday, of the latest UK unemployment figures. |
| The number of jobless could rise sharply, with some forecasters warning the total of those out of work might hit two million or more. | The number of jobless could rise sharply, with some forecasters warning the total of those out of work might hit two million or more. |
| Debt increase | Debt increase |
| Meanwhile, a survey commissioned by the Bank of England has suggested an increase in the number of households struggling with debt. | Meanwhile, a survey commissioned by the Bank of England has suggested an increase in the number of households struggling with debt. |
| Many said they had less to spend after paying household bills and had saved less than they expected. | Many said they had less to spend after paying household bills and had saved less than they expected. |
| Nearly 2,500 households were interviewed for the survey in late September and early October. | Nearly 2,500 households were interviewed for the survey in late September and early October. |
| More respondents were finding their debts to be a burden than in any similar survey since the mid 1990s. | More respondents were finding their debts to be a burden than in any similar survey since the mid 1990s. |
| The bank says after a period of growth and low inflation, it has seen an abrupt change in the circumstances facing British households. | The bank says after a period of growth and low inflation, it has seen an abrupt change in the circumstances facing British households. |
| Sterling's lows | Sterling's lows |
| International investors' lack of confidence in the UK economy has seen the the pound hitting new lows against the euro: last week one pound bought as little as 1.11 euros, the lowest ever. | International investors' lack of confidence in the UK economy has seen the the pound hitting new lows against the euro: last week one pound bought as little as 1.11 euros, the lowest ever. |
| But the government appears to have ruled out action to shore up sterling. | But the government appears to have ruled out action to shore up sterling. |
| On Sunday the chief secretary to the Treasury, Yvette Cooper, told the BBC the government was not planning to step in to support the pound. | On Sunday the chief secretary to the Treasury, Yvette Cooper, told the BBC the government was not planning to step in to support the pound. |
| She said attempts by previous administrations to target exchange rates had been unsuccessful. | She said attempts by previous administrations to target exchange rates had been unsuccessful. |
| Instead the government would continue to try to keep inflation under control and support the economy, she said. | Instead the government would continue to try to keep inflation under control and support the economy, she said. |
| "We have never had a policy of targeting the pound. Our policy has been to target inflation and that, I think, has been the right way. It has paid off over the last 10 or 11 years." | "We have never had a policy of targeting the pound. Our policy has been to target inflation and that, I think, has been the right way. It has paid off over the last 10 or 11 years." |
| Huge deficits | Huge deficits |
| But the government has been warned that any action it takes to support the UK economy must not break EU rules. | But the government has been warned that any action it takes to support the UK economy must not break EU rules. |
| European Central Bank President Jean-Claude Trichet told the Financial Times that the EU's "stability and growth" pact must not be allowed to fall apart. | European Central Bank President Jean-Claude Trichet told the Financial Times that the EU's "stability and growth" pact must not be allowed to fall apart. |
| The pact has rules designed to stop EU member states from racking up huge budget deficits and national debt in order to boost their economies. | The pact has rules designed to stop EU member states from racking up huge budget deficits and national debt in order to boost their economies. |
| "We would destroy confidence if we blew up the pact," he said. | "We would destroy confidence if we blew up the pact," he said. |
| Mr Trichet is said to be worried that fiscal indiscipline - such as governments printing large amounts of currency in order to boost spending - could threaten "already fragile" economic confidence. | Mr Trichet is said to be worried that fiscal indiscipline - such as governments printing large amounts of currency in order to boost spending - could threaten "already fragile" economic confidence. |
| Are you struggling with household bills? Are you trying to sell your home in a gloomy climate? Are you facing unemployment and concerned about how to get by? Tell us about your financial situation by filling in the form below. | Are you struggling with household bills? Are you trying to sell your home in a gloomy climate? Are you facing unemployment and concerned about how to get by? Tell us about your financial situation by filling in the form below. |