The balance of power in the UK’s country house market has decisively shifted towards buyers, marked by a 7% increase in sales for homes over £750,000 in June compared to last year. This surge in activity coincides with a significant rise in available properties and a continued downward trend in prices, creating prime conditions for purchasers.
Knight Frank reports a notable increase in supply, with 9% more country houses coming to market in the second quarter of the year compared to last year. This influx is partly due to second-home owners reacting to recent council tax changes, which allow Welsh councils to quadruple and English councils to double taxes on second homes, incentivizing them to sell.
“Prices are correcting and as a result activity is noticeably picking up,” commented James Cleland, head of the country business at Knight Frank. He highlighted a busy June, with many deals agreed across all price points, suggesting a promising outlook for exchanges in the coming months. Cleland reiterated the importance of competitive pricing, stating, “If you get it right, buyers pounce but if you get it wrong, not a lot happens.”
This current environment sharply contrasts with the “race for space” observed five years ago, driven by COVID-19 lockdowns. Following that initial boom, demand softened, leading to average country house prices falling by 3.5% in the three months to June, accelerating from a 1.6% decline year-on-year to March. Buyers now hold significant leverage, with only 5.9 potential buyers for every new country house instruction, a steep decline from nearly 19 at the pandemic’s peak. This level of buyer advantage has not been seen since the political volatility of mid-2018.
