House prices will rise by 5% by next year on a national level and by 3% in London, says Rightmove.

Broken down regionally, it says that prices in Scotland, the West Midlands, the South West and Yorkshire and the Humber will increase “upwards of 7%”.

Rightmove identifies “the lowest ever available stock of property for sale per estate agency branch, yet with ongoing high buyer demand” as one reason for this as well as a continuing focus on the importance of home life for many people.

Another factor is what Rightmove has termed ‘late-bird movers’ – those who want to move house but have been waiting for more certainty regarding the economy and their jobs.

The firm believes this factor will help more properties come on to the market next year as well.

Rightmove director of property data Tim Bannister says: “While [we] see a continuing busy market in 2022, we forecast it to be less frenzied than 2021, especially if the current scarcity of properties is eased as more owners decide to come to market in the first half of the year.

“Movers will still benefit from good mortgage availability and attractive rates even if base rates rise, and more choice of property coming to market and the slower pace of price rises compared to 2021 will encourage some who have held back so far to take action.”

Rightmove may be underestimating London’s attraction next year, says Benham and Reeves Marc von Grundherr. He explains: “London has been building a serious head of steam in recent months, buoyed by a return to the workplace, as well as an uplift in foreign buyer demand as travel restrictions have eased.

“Yes, the latest threat of the Omicron variant may now play a part, but it simply won’t derail a London market that has finally awoken from a slumber of subdued property price growth.

“We expect the central London market to climb by four to five per cent at the absolute least, while outer London will see further growth still.”