_The year ahead: 2022 predictions from Knight Frank Auctions
Richard Watson, Head of Knight Frank Auctions, says: “We have registered a noticeable uptick in buyer enquiries and a strong desire for viewings across all price points.
The confidence in the property market that grew month by month last year, looks set to continue into 2022 as both buyer and sellers came to appreciate the advantages auctions bring. They bring speed and certainty to property transactions and carry a guaranteed deadline, erasing any uncertainty. That’s a real bonus, especially for vendors who might have been frustrated by their sales collapsing multiple times before.”
Compared with the uncertainty of January 2021 when the UK was plunged back into lockdown, 2022 started with a considerably more optimistic outlook. “As we head into spring and concerns over Covid-19 continue to ease thanks to the successful rollout of the vaccination programme, we expect to build on the strong activity seen over the past twelve months,” says Richard.
The success of Knight Frank’s auctions attracted investors in both residential and commercial markets across a wide price range. Meanwhile, for sellers, the widely held view that interest rates will rise later this year means that spring is the ideal time to lock in a mortgage deal.
“The spring auction market is traditionally a busy time and I expect we will see plenty of activity in the auctions market throughout March and April and on into the summer, as clients take advantage of current low borrowing rates,” Richard says.
A favourable mortgage market
Knight Frank Finance reports that whilst average mortgage rates have risen following the Bank of England raising the base rate from 0.1% to 0.25% in December, other aspects of the mortgage market have become more favourable to borrowers.
Sanvir Dhillon, Associate at Knight Frank Finance, says: “The number of mortgages granted to UK borrowers looking to purchase a home stood at 67,000 in November 2021, close to the pre-pandemic average of 66,700 according to the Bank of England, significantly down from the mid-pandemic highs of over 80,000 monthly approvals. This shows that activity in the market is easing, which means competition among lenders to reach borrowers will increase, driving up the range of products on offer. Money comparison experts Moneyfacts figures show that the choice of mortgage products is already at its highest level for 13 years.”
The year is lining up to be busy and productive. “The auction market has proven its resilience since the start of the pandemic,” says Richard. “This will only lead to even greater success as buyers and investors turn to auctions as a transparent and appealing way to achieve their property goals.”
To learn more about how Knight Frank Auctions can help you in 2022, contact Richard Watson or visit our Auctions Site.