In its annual report on the market, Rightmove has predicted a one percent rise in house prices across the UK.
While house prices will see a rise across most of the UK, the value of homes in London is set to fall two percent.
London’s property market has had a rough last quarter of 2017 with house prices dropping 3.7 percent in December alone.
Miles Shipside, Rightmove director, said: “Economic and political uncertainty tend to weigh more heavily on the capital,”
In 2018, UK property “will continue the 2017 trend by being a real mixed bag of different price pressures both up and down, but the net result is that we forecast another year of a slowing in the pace of price rises.”
The average asking price for an English or Welsh house is currently £302,865. This is a 2.6 percent decrease compared to November, but a 1.2 percent increase from this time a year ago.
The report from Rightmove stands in line with last month’s report from Savills. The UK estate agent also predicted a one percent rise in house prices in 2018.
“We estimate that 2018 will continue this year’s trend by being a real mixed bag of different price pressures, both up and down. The net result is another year of a slowing in the pace of price rises,” said Shipside.
“Increasingly stretched buyer affordability, exacerbated as intended by tighter lending criteria and increased stamp duty for second home-owners, is taking its toll on upwards price pressure. It is aided by a slowdown in the higher-end markets, with the influence of a readjusting London being a weighty factor on the national averages.”
In London, some areas will continue to outperform others. The report said that the lower and middle parts of the market will do well. First-time buyer properties will have the most price resilience.