Homes in the UK will become more expensive in the New Year, according to Fitch.
Homes in the UK will become more expensive in the New Year, according to Fitch.
At the projected 2 per cent, price growth will not be too high though, the rating agency says in its latest Global Housing and Mortgage Outlook report.
There are signs of a reversal with higher property inflation moving to the North of the country, while the price growth in the South East cools down.
The biggest risks ahead are potential interest rate changes and deflationary pressures in the euro area, Fitch says.
The Bank of England is expected to raise the base rate in late 2015.
Fitch noted the quick drop in home ownership in the UK, which has shrunk to 65 per cent from 73 per cent in the past six years. Stretched affordability and the increasing number of people who prefer to rent are main drivers of this change, according to the agency.
Fitch noted that ownership levels are falling in many other countries as well, despite the stable or positive forecasts for most mortgage markets.
