House prices set to fall in London and the south east this year, according to Fitch

Helen Cahill
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Stagnant wage growth is making houses unaffordable in London (Source: Getty)

The UK will be one of the few markets to miss out on house price growth in 2018.

According to a report from Fitch Ratings, average house prices will fall in London and the south east due to sky-high prices, stagnant wage growth and political uncertainty.

For the UK as a whole, growth will be flat, the report said.

Read more: Here's how much London house prices fell in November

There could also be house price declines in Greece and Norway, with prices falling by two per cent and five per cent respectively. However, prices are tipped to rise across France, the USA, Germany, Canada and Ireland.

In Ireland, house prices are set to rocket by as much as 10 per cent, the only market where Fitch has forecast double-digit price growth. The demand has been partly fuelled by the government's support for first-time buyers.

Suzanne Albers, senior director for structured finance at Fitch Ratings, said: "Arrears are at very low levels in most markets. They will only move in one direction as mortgage rates rise slowly due to higher policy rates and more expensive bank funding from the gradual unwinding of quantitative easing."

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