Knight Frank says it’s already being contacted by prospective vendors wanting their homes to be listed for sale next spring.
James Cleland, head of the agency’s country business, says: “We are starting to see a notable increase in the number of owners contacting us with a view to listing their property next spring. For shrewd sellers, the best time to put their property on the market is likely to actually be January when there are a large number of buyers around.”
The agency cites that prospective supply surge next year as one of the main reasons this year’s housing market frenzy - fuelled by a stock shortage - will not be repeated in 2022.
Knight Frank is adding that the slowdown will be further accelerated by the likelihood of increased interest rates. It points out that interest rates were 0.75 per cent before Covid struck and any effect is likely to be limited while rates remain below this level.
But it warns that high inflation in the mainstream economy means interest rates are likely to rise in 2022; this is notwithstanding the Bank of England's decision to hold its base rate at 0.1 per cent last week.
Knight Frank adds that from its own research it believes three locations have seen the largest capital growth over 2021 so far.
These are all in north-west England: Rossendale (up 24.2 per cent) and Wirral and Liverpool (each up 21.6 per cent).