Country house market enters 2007 with a bang

Prices of country houses grew by an average of 3.1% in the first quarter of the year leading to an annualised price growth of 12.4% for manor houses, the highest rate since 2000, according to the latest Knight Frank Prime Country House Index.

Manor houses continue to be the strongest performing country house sub sector, with average growth of 3.5% in the quarter.

The average price of farmhouses increased by 3.3%, while cottages increased by 2.5%.

The South West was the best performing region in the first quarter of 2007 with average price growth of 5.1%.

The markets facing the most significant demand over supply excess are: Tunbridge Wells, Ascot and Worcester.

The number of new applicants has risen by 21%, with the number of properties on the market have increasing by 18%, in anticipation of the busy spring and summer market.

Knight Frank’s Head of Residential Research, Liam Bailey, comments: 2007 has started with strong growth in the country house market. Manor houses proved to be the strongest sub sector yet again, with prices growing by 3.5% bringing their annualised price growth to 12.4%, the highest since 2000. The current average price of a Manor house has now broken the £3,000,000 barrier.

Payment of City bonuses together with an increasing international presence in the country house market has aided price growth. Cottages have increased price by 2.5% to average a little over £547,500 while the price of farmhouses increased by 3.3% to an average price of just over £1,270,000.

Prices of manor houses, farmhouses and country cottages have risen by £4,516, £13,474 and £34,241 per month on average since December.

The South West region was the best performing region in the UK with property prices increasing by an average of 5.1% in the first quarter of the year.

Currently, farmhouses and cottages are experiencing a strong excess in demand with an average of 15 applicants per property. A similar analysis performed by area reveals that Tunbridge Wells, Ascot and Worcester have in excess of 29 prospective purchasers to each available property, mainly due a shortage of stock.

The number of new applicants has on average increased by 21% per month since the start of the year. Areas attracting considerable interest include Exeter, Birmingham and Hereford which have all experienced growth in the number of registered applicants in excess of 25% in the first quarter of 2007.

In the anticipation of a strong spring market the number of new properties brought to the market increased by 18% between February and March 2007. Areas with a particularly improved supply of property include Beaconsfield, Stratford and Basingstoke.

The country house market

Knight Frank tracks the performance of three country house property categories:

Manor house prices rose by 12.4% in the year to March, with the average example increasing in price from £2,671,600 to £3,002,100 over the 12 month period (an increase of £330,500 A typical manor house comprises a large property standing in its own, usually extensive, grounds with a private drive.

One such property currently on the market is Mildmay House at Twyford, a classically beautiful Grade II listed country house in an elevated edge of village position. The property has well proportioned reception rooms and bedrooms plus a couch house with flat and office and is surrounded by beautiful formal walled gardens. Guide price of £2.8million.

Farmhouses rose by 10.6% in the year to March, with the average example increasing in price from £1,151,000 to £1,273,100 over the 12 month period (an increase of £122,100). A typical farmhouse has between 5 and 6 bedrooms, several acres of land including garden, paddock and barns.

An example would be Pembroke Farm, an impressive Grade II listed farmhouse occupying an enviable rural position with attractive views, which is currently on the market for £1.25million. The property has five bedrooms and a range of both traditional and modern farm all set in about ten acres.

Country cottage prices were 9.5% higher in March compared to 12 months earlier, with the average example increasing in price from £500,100 to £547,000 over the 12 month period (an increase of £47,400) The typical cottage has up to one acre of land, is detached, and has three bedrooms.

Lilac Cottage is one example which has recently gone under offer. The property is a delightful Grade II listed semi-detached Cotswold stone cottage tucked away in a quiet corner of the village with a lovely large garden.