Lenders’ losses from sales of repossessed properties are expected to reach 22 per cent of the market value of the home by the time UK house prices reach their floor, Standard & Poor’s, the credit ratings agency, has warned.

The warning, made in a detailed research study to be released by S&P on Monday, will come as a further blow to banks that are already experiencing rising levels of foreclosure as economic conditions worsen and house prices fall further.