Country house prices rose for the first time in two years in the third quarter of 2009 analysts reveal. According to Knight Frank, prices increased by 1 per cent nationally for country homes valued at GBP500,000 or more, between July and September. Buying activity was strongest in the Home Counties as London's mini-boom rippled out into the countryside.
Andrew Shirley, head of rural research at estate agency, Knight Frank, said prices have risen 3 per cent in the Home Counties since March 2008. This compares with a modest 0.3 per cent rise in the Midlands and falls of 0.1 per cent in the south west and 5.3 per cent in the north and Scotland over the same period.
City of London finance workers and overseas investors have been venturing out of the British capital's property market into the countryside since last spring.
“You can see the affects of the increases in London filtering out to the Home Counties and then spreading out more generally to the rest of the country,” Shirley said, “More overseas buyers are buying in the posh enclaves of Hampshire and Surrey.”
Prices were rising most strongly for multi-million pound homes, including manor houses, he said. Buyers of these properties paid mostly in cash, so were less troubled by the lack of mortgages which continued to pull the lower end of the property market down, he added.
Many buyers stayed away during the 2008 downturn, but now this pent-up demand was being unleashed on the market he said.
“People who have waited a year, but now have to move for family reasons or other reasons, see now is a good time to get back into the market, because mortgage rates are low, prices are a bit lower,” he said, “that bounce in demand is pushing prices up.”
Jonathan Bramwell, head of country at buyer agency, Prime Purchase, said British expatriates relocating from Hong Kong were buying homes for retirement or close to schools for their children. A country house in the Home Counties had been sold to a Chinese buyer, a sign that the much expected influx of mainland investors had started, he said.
Mr Bramwell said prospects for the country house market were uncertain.
“There is a general election coming up, so the market will go into limbo,” he said, “A Conservative government will be elected and some say this can only be good news for us.”
He advised buyers to hire a British-based solicitor, because they would run a money laundering check on them, which would improve their credibility with sellers. He also recommended buyers get expert advice when choosing a property, so they would know its true value.
Country houses on the market through Knight Frank include Malverleys, a GBP12 million home in Hampshire which comes with parkland, walled garden, swimming pool and tennis courts. The company is also marketing Ashenden, a Grade II listed Georgian house in Kent with 95 acres of land, on offer for GBP4.35 million.
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