House prices across the country are predicted to rise by another 5 per cent next year.
According to Rightmove, the average price of a property in the UK will continue to climb in 2022 due to a larger buyer demand and a lower level of properties available.
Demand to purchase a home is currently up by two percent from this time last year, and up by a huge 40 percent when compared to November 2019.
This has stemmed from the first lockdown, where people's housing needs changed sparking moves to bigger homes, places with more outdoor space and the stamp duty holiday tempting house hunters to move quicker.
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The most competitive property markets are currently in Scotland, the West Midlands, the South West and Yorkshire and the Humber, where house prices are expected to grow by 7 percent next year.
It is also predicted that the London market will continue to improve, with less activity and price rises than the rest of the country, with a three percent growth.
Tim Bannister, Rightmove's director of property data, said: "It’s been a hectic 18 months for the property market since the end of the first lockdown, with changed housing needs driven by the pandemic inspiring many moves, and the stamp duty holiday encouraging some movers to bring their plans forward.
"The net result as we approach the start of the 2022 market is the lowest ever available stock of property for sale per estate agency branch, yet with ongoing high buyer demand.
"This imbalance between supply and demand has resulted in buyer demand per available property being at near record highs, suggesting that the 2021 scenario of multiple buyer bids on a high proportion of properties when they come to market is set to continue in the new year."
Whilst buyer demand continues to outweigh supply, Rightmove predicts that the pace of house price rises in 2022 will be calmer compared with 2021.
"We do, however, 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," said Tim.
"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.
"Therefore if sellers are too optimistic on their asking price in the first half of the year, they risk missing the most active part of the market."
The UK housing market has followed a similar pattern to many other countries with an intense focus on the home.
Buyer demand is now up by 40 percent compared with November 2019 prior to the pandemic.
There are however encouraging signs for more properties to come onto the market, with a 19 percent jump last month from people request in agents to value their home via Rightmove.
Adam Kamani, CEO and co-founder property portal of MoveStreets, commented: “It’s important to remember that despite the end of the stamp duty holiday, the hopper of property transactions remains full to the brim.
"As a result, we will hit the ground running in 2022 with many sales completing in the early stages having been agreed in the final months of this year.
"This delayed impact on property price growth will ensure that any festive period of calm is short lived and any uncertainty around the current Covid landscape is also negated, with house price growth remaining robust.
"While the ship is certainly likely to steady in terms of the sheer volume of market activity seen in 2021, we will remain a nation of aspirational homeowners in 2022 and far beyond and the market will keep moving forward.”
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