propertytalk Live! - Prime country house prices edge upwards

propertytalk Live! - Prime country house prices edge upwards

UK prime country house prices rose in the first quarter of 2011 by 0.5%, partially reversing some of the price falls in the second half of 2010.

The latest Knight Frank Prime Country House Index also revealed that with prices of prime London property having risen by 30% since March 2009, buyers coming out of the capital are beginning to have an effect on the prices of the best country properties.

Price growth in the country is still not evenly spread, with slight falls recorded in the North and Scotland, and the strongest growth, 1% and 1.2% respectively, recorded in the South East and the South West of England.

With low stock volumes and ongoing strong interest from London based buyers, further price growth in the counties around London should be expected over the spring and summer.

Liam Bailey, head of residential research at Knight Frank, said: "The UK housing market has been experiencing difficult conditions since the middle of last year, and the prime country house market did not escape this trend.

"Prices fell in the second half of 2010 across most regions. However, the revival in the London market since the autumn has begun to filter through to the country house market. With foreign buyers happily buying over 50% of central London £2million-plus properties, some of these vendors are now looking to move into the country house market.