propertytalk Live! - Two-speed prime country house market as London property prices filter out

propertytalk Live! - Two-speed prime country house market as London property prices filter out

Prime country house prices fell 1.5% between April and June after a 0.2% decline in the previous three months according to Knight Frank.
The annual decline in prices has now widened to 4.8% from 3.9% between January to March while the price of property worth £5 million or more continues to rise, up 0.8% on the quarter and 3.5% on the year.
Demand from London buyers has created country commuter ‘hotspots’, with prices of prime property in Oxford up by 2.5%, 0.5% in Henley and 0.2% in Guildford.
Currency movements have made prime country property more attractive for overseas buyers.
Grainne Gilmore, Head of UK Residential Research, comments: “The value of prime country property fell for the fifth consecutive quarter between April and June, taking the annual decline to 4.8%. Prices are just slightly higher than 2009 levels, in contrast to prices in prime central London, which have risen by 48% since the trough of the market in early 2009. But this disparity in pricing has led to more interest from London buyers looking for more ‘bang for their buck’.
“For example, a family with a home valued at £2.4 million in prime central London in early 2009, but who have held off moving to the country until now, will have an extra £1.12 million to spend on a bigger country home or more land, as their London property is now worth around £3.52 million.
"Alternatively, a couple who bought a home worth £1.5 million in prime central London in May 2010 can now look for a comparable property in the country worth £1.79 million thanks to the uplift in the value of their London home in the interim.
“The increase in interest from London buyers is reflected in country ‘hotspots’, many of which are close or within commuting distance of the Capital.
Prices of prime property in Oxford rose by 2.5% in the second quarter, while prices in Henley are up by 0.5% and prices in Guildford climbed by 0.2%. In contrast, prices in Harrogate fell by 1.3% on the quarter, and values in Sherborne declined by 3.7%.