Property prices in Spain are set to fall 13 per cent by the end of the next year, Standard and Poor’s has warned.

A move by bank Sareb to sell 91,000 repossessed properties will have a major effect on the market in Spain.

Meanwhile, prices in France are set to fall 5% this year and next, according to S&P. In the Netherlands, the drop will be 6.5% by late next year, and there will be further price falls in Italy, Portugal and Ireland.