Growth in country house prices on the increase

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by Kay Murchie

Estate agency Knight Frank has announced that the annual rate of price inflation for country houses is currently at 11.6%, compared with 8.9% in the mainstream market and therefore outperforming the housing market overall.

It was recently revealed that housing assets had contributed to the UK’s cumulative wealth increasing by 5% in just 12 months and it is the bigger country manors that experienced the best growth.

Knight Frank commented that city bonuses, combined with a growing number of international buyers in the manor house market, has helped price growth. According to research, overseas buyers bought 43% of properties costing more than £5 million in the South East during the last 12 months.

Farmhouses, which on average have at least 5 bedrooms and several acres of land, also experienced above average price growth. Their value rose by 10.6% during the last 12 months and 3% during the last quarter to an average £1.3 million.

The average price of a country cottage with 3 bedrooms and an acre of land reached just over half a million pounds at the end of June, 8.9% higher than 12 months previously and 2.8% higher than in April.

The amount of property sales agreed in June and July increased dramatically, up 32% on a year on year basis. Consequently, the supply/demand balance has shifted. Knight Frank added that the top end of the market will see stronger growth over the next six months.