London ripple boosts UK country house sales

Prime UK country house prices rose for the sixth consecutive quarter between April and June.

Prime UK country house prices (£2m+) in England rose by 1.1% in the second quarter of 2014, taking the annual increase in prices to 5.2% over the year to June, according to the latest Prime Country House Index from estate agent Knight Frank.

“Although still playing ‘catch-up’ with the prime market in London, where prices increased by 7.8% over the year to May, this is the strongest rate of annual growth in the prime country market in four years,” said Oliver Knight from Knight Frank Residential Research.

Looking at market activity, the volume of prime country sales completed in the second quarter was 11% higher than the corresponding period last year. This was driven primarily by the sub-£2m market which accounted for 80% of Knight Frank sales over the three months to June.

The higher volume of sub-£2m sales has contributed to stronger price rises for homes valued below this threshold. While average values of sub-£2m prime properties rose by 1.3% between April and June, growth in value for houses worth over £2m was 0.6%. Super-prime homes, worth over £5m, actually fell in value by 2.3% over the course of the quarter, although they remain 1.2% higher on an annual basis.

Knight explained: “While there are indications that buyers have started to factor the higher 7% stamp duty charge for £2m+ properties into decisions, fresh uncertainty surrounding the possible introduction and form of a ‘Mansion Tax’ has contributed to lower price growth for homes worth £2m plus.”

Regional basis

The Home Counties and South West markets have continued to benefit most from the ‘London ripple’ effect, with house price growth spreading outwards from central London.

Additionally, these markets are being boosted by the return of London buyers. This is reflected in country ‘hotspots’, many of which are close or within commuting distance of the Capital. Prices of prime property in Winchester and Cobham rose by 2.6% in the second quarter, while prices in Virginia Water were 2.5% higher and in Oxford values climbed by 1.8%.

Looking to the future, there are signs momentum may be slowing slightly. While the number of property viewings was fairly steady during the three months to June compared to the same period last year, the number of prospective buyers registering their interest in buying a prime country home fell by 2%.

Increased activity

Rupert Sweeting, Head of Knight Frank Country, comments: “After little or no price growth for a couple of years, the increased activity in the country market is slowly filtering through to price growth. There are areas that are more active than others with counties like Hampshire seeing a significant increase in sales reflecting renewed confidence from London (and often city employed) buyers.

Press release ends.

ABOUT NEW FOREST, SANDBANKS, UK COUNTRY HOUSES AND ESTATES PROPERTY SEARCH AGENTS AND PROPERTY BUYING ADVISORS, SANDS HOME SEARCH

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TAGS: New Forest, Sandbanks, England, Property, Sale, Buy, Selling, Buying, Search, Homes, Houses, Country Homes, Property Search Agent, Relocation Agent, Property Buying Agent, Property Buying Advisor, Relocation Company, Property, Real Estate, Country Houses, Country Homes, Country Estates, Period Property, Equestrian Property, Farms, Waterside Homes, Town, City, Village, For Sale, Period Property, Rectories, City, Buying, Selling, Renting, Homes, Houses, Estate Agents, Property Search, House for sale, Property Prices, Property Market, Property Agents

(from outside of the UK 0044 1425 462 549)

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Sands Home Search are property search agents and relocation agents who specialise in finding and acquiring the finest residential property for sale in London, The UK Country House and Farm market and in Cape Town, South Africa for private, corporate and international property buyers clients. www.SandsHomeSearch.com
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