House prices will rise by 5% by next year nationally and by 3% in London, according to Rightmove.
Broken down by region, it says prices in Scotland, the West Midlands, the South West and Yorkshire and the Humber will rise “by more than 7%”.
Rightmove identifies “lowest ever available inventory of property for sale by estate agency, but with continued high demand from buyers” as one of the reasons for this, along with a continued focus on the importance of living home for many people.
Another factor is what Rightmove has called “late movers” – those who want to move but are waiting for more certainty about the economy and their jobs.
The company believes this factor will also help more properties come to market next year.
Rightmove’s director of real estate data, Tim Bannister, says: “While [we] If the market remains active in 2022, we expect it to be less frantic than in 2021, especially if the current scarcity of properties eases as more owners decide to enter the market in the first half of the year.
“Movers will still benefit from good mortgage availability and attractive rates even as base rates rise, and a wider choice of properties coming to market and the slower pace of price increases compared to 2021. will encourage those who have held back thus far to act.”
Rightmove may be underestimating the London attraction next year, according to Benham and Reeves Marc von Grundherr. He explains: “London has built a serious head of steam in recent months, supported by a return to work, as well as increased demand from overseas buyers as travel restrictions ease.
“Yes, the latest threat from the Omicron variant may now play a part, but it simply won’t derail a London market that has finally woken from a slumber of subdued property price growth.
“We expect the central London market to grow by four to five per cent at least, while the outskirts of London will still see further growth.”