Five years after the “race for space” sparked by COVID-19 lockdowns, the UK country house market is experiencing a significant correction, with falling prices now stimulating a 7% increase in sales for homes over £750,000 in June compared to last year. This trend suggests that a more balanced market is emerging, driven by attractive valuations.
According to Knight Frank, a leading estate agency, the average country house price fell by 3.5% in the three months to June, accelerating from a 1.6% decline in the year to March. This price adjustment, coupled with an increased number of properties on the market, is drawing buyers back. The surge in listings is partly attributed to second-home owners responding to new council tax powers, which allow Welsh councils to quadruple and English councils to double taxes on second homes.
James Cleland, head of the country business at Knight Frank, noted that “Prices are correcting and as a result activity is noticeably picking up.” He highlighted June’s strong performance, with numerous deals agreed across all price brackets, indicating positive momentum for future exchanges. Cleland stressed that “It’s all about pricing. If you get it right, buyers pounce but if you get it wrong, not a lot happens.”
The current market conditions offer buyers significant negotiating power, a stark contrast to the pandemic’s peak. There are now only 5.9 potential buyers for every new country house instruction, a dramatic drop from nearly 19 during the peak exodus from cities. This level of buyer advantage has not been seen since the second quarter of 2018, during a period of political uncertainty.