_Steady improvement in demand for country houses

These headline figures should not be viewed in isolation, however. Demand for prime country property continued its steady improvement over the summer, figures in the latest Knight Frank Prime Country House Price Index show.

There was a 4.1% year-on-year increase in the volume of new prospective buyers registering their interest in buying a home between January and August 2017, for example, while the number of viewings conducted was 6.5% higher over the same period.

This has translated into an increase in deal volumes in the prime country market, particularly in recent months. Knight Frank sales were up by 6% year-on-year between January and the end of August, for example, with a 35% increase in sales above £2m in the four months to September alone.

This took place despite the uncertainty in the run up to and following June’s general election, as well as the ongoing Brexit negotiations. Agents note that demand has picked up as asking prices reflect higher levels of stamp duty following changes to purchase taxes in 2014 and in 2016, especially at the top end.

Larger manor houses recorded the largest price declines over the course of the year accordingly. Town houses outperformed the wider market, with average annual growth of 3.8%, driven by the continued demand for prime property in urban locations.

However, while there have been signs of an improvement in activity this year, falling stock levels at the top end of the market could weigh on sales volumes as the year progresses.

An analysis of listings data shows there were 8.2% fewer homes worth over £1 million advertised for sale across England and Wales at the end of August compared with the same period the in 2016. Above £2 million, the fall was slightly higher at 9.5%.

For more information contact Oliver Knight or read the report in full on our research library