The UK’s upscale country house market is showing signs of renewed vigor, with sales of homes priced over £750,000 increasing by 7% in June compared to last year. This uptick suggests a potential recovery in buyer demand, largely attributed to falling prices that are now enticing purchasers back into the market after a prolonged slump. Estate agency Knight Frank reported this surge in exchanges, noting that more properties are available while prices have continued to decline.
A significant factor contributing to the increased number of properties for sale is the influx of second-home owners putting their rural properties on the market. This trend follows recent changes to council tax regulations, designed to create a more equitable living situation for local residents in popular holiday destinations. Councils in Wales, for instance, now have the authority to quadruple taxes on second homes, while English councils can double them. The second quarter of the year saw a 9% rise in country houses entering the market compared to the same period last year.
According to James Cleland, head of the country business at Knight Frank, “Prices are correcting and as a result activity is noticeably picking up.” He highlighted June as a busy month, with numerous deals agreed across all price brackets, indicating a positive outlook for exchanges in the coming months. Cleland emphasized the critical role of pricing, stating that “If you get it right, buyers pounce but if you get it wrong, not a lot happens.”
The current market dynamic stands in stark contrast to the “race for space” seen five years ago, when COVID-19 lockdowns spurred a mass exodus from cities to the countryside. Demand subsequently cooled, leading to average country house prices falling by 3.5% in the three months to June, a faster decline than the 1.6% drop recorded in the year to March. This shift has placed buyers in a strong negotiating position, with only 5.9 potential buyers for every new country house listing, a significant drop from nearly 19 during the pandemic’s peak. The last time buyers held such leverage was in the second quarter of 2018, amidst political uncertainty surrounding Brexit.
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