Forecasts

House price inflation is likely to "unwind" back to single figures across the UK, predicts Knight Frank, although Prime Central London is set for higher price growth as global travel resumes.

Average house prices are likely to rise by 7.4% this year, predicts the Office for Budget Responsibility, and by 15.8% over five years.

Knight Frank is predicting continued price rises for international luxury property markets in 2022 - although the pace of growth is likely to be significantly lower than 2021's extraordinary performance.

"We expect to see a very competitive market this year," says Guy Robinson, Head of Residential at Strutt & Parker.

Savills' research team is predicting another strong year for property markets in prime global cities, with Miami and Berlin set for the highest rates of price growth in 2022.

"Following a bit of an exodus from cities during the pandemic we saw prices in regional areas start to soar, but that will stabilise this year," predicts Colliers' Head of Residential - "although areas…

"The UK prime residential market continued to perform exceptionally strongly through the last quarter," says Savills, "and volumes in the Prime Central London market clearly began to improve.

Savills' head of residential research reflects on how forecasters translate actions and events into numbers and trends to come up with property market predictions for the year ahead.

Knight Frank's UK resi research boss runs through the key factors that could affect the trajectory of the market over the next 12 months...

Marylebone, Belgravia and Mayfair have seen the biggest increases in new buyer registrations in recent months, reports Knight Frank

Around half a dozen homes valued at up to £100m are due to be listed for sale in the coming months.