House prices will rise next year says Rightmove - but it warns that tax hikes will curb price rises, particularly later in 2022.
In its annual forecast, the portal predicts that the national average price of homes coming to market will rise 5.0 per cent next year, as strong buyer demand and a historically low level of available property continue to exert pressure.
It says Scotland, the West Midlands, the South West and Yorkshire and the Humber are likely to see price growth at a higher rate of upwards of 7.0 per cent next year.
The London market will continue to improve, albeit from a lower base of activity and lower price rises than the rest of the country, with 3.0 per cent growth.
“We…expect the pace of rises in 2022 to be slower than in 2021 due to increasingly stretched buyer affordability following this year’s rapid rises in average prices. Slowing in the pace of price rises and activity is likely to be more evident in the second half of the year as base rate rises, higher inflation, and higher taxes begin to weigh more heavily on buyer sentiment” cautions Tim Bannister, Rightmove’s director of property data.
Bannister believes the relative normality of next year’s market will encourage some vendors deterred by this year’s frenzy.
The portal anticipates this should see more properties come to market, especially when combined with the usual surge of speculative spring sellers getting on with their moving plans early in the year.
“There are already encouraging signs, with a 19 per cent jump in November in the number of people requesting for agents to value their home via Rightmove compared with the same period last year” he adds.
And Bannister concludes: “While Rightmove sees 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.”