The average UK property will rise a healthy 8.2% next year and 30% over the next five years, but prices in London will continue to rise much faster.
Estate agent Chesterton Humberts expects the prime London market to grow 9.7% a year between 2014 and 2018, to a total of 48.5% over five years.
The strong pace of growth will be sustained until at least 2016 thanks to government mortgage support schemes.
These "prop up" the lending market by allowing cheap mortgage credit and enabling more people to buy.
But it claimed there was no housing market bubble in sight.
Nick Barnes, head of research at Chesterton Humberts, said; “2013 has marked the beginning of a recovery in the UK housing sector and I expect strong house price growth to continue throughout next year.
"However, I do not believe we will enter bubble territory as achieved price growth to date outside London has been modest and is sustainable for the time being thanks to the various government mortgage support schemes.
“Moreover, mortgage interest rates are likely to remain low at least until the general election in May 2015, meaning that affordability should stay manageable for most households."
He said current affordability measures from the Nationwide and Halifax are some way from the worst periods of the last big recession in the 1980s and early 1990s.
Chesterton Humberts also expects the North/South regional divide to persist in the New Year, as London, the South East and East Anglia continue to outperform the rest of the UK.
Homeowners remain positive, with the latest House Price Sentiment Index from Knight Frank hitting a record high between September and November.
Londoners expect the biggest rise in prices over the next year.
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