Prime country prices outperform the mainstream market

Prime country sales have outperformed the mainstream market by over 15% in the past year, according to data from Primelocation.com. The data shows that prices for prime country properties have risen 4.7% in the past twelve months, as opposed to the 10.5% fall that the typical house has experienced according to latest Nationwide figures.

This annual increase in prime country values comes despite prices falling by 0.64% in September - the second monthly decline. Up until August, prime country values had appeared immune to the credit crunch that is currently creating turmoil in the UK housing market. Prices had risen month on month since December 2007, but over the last two months, the Primelocation.com Prime Index shows that prices fell by 0.92% in August and 0.64% in September.

According to data, the biggest gains were enjoyed by the North, which experienced a 1.3% increase in values since August, with two areas doing particularly well: Tyne Tees is up 4.7% with four bedroom properties up 7.5% and Lancashire and the Lakes are also up 3.5%. The West Midlands and Wales are up 1.8% with Staffordshire faring the best in that region up 3%.

Despite overall gains for prime country properties, the South West continued to show a decline. Values in this area were down 1.8% in September following a 2.1% fall in August, meaning that as a whole, the region has lost 3.9% since July. Individually, Cornwall was down 2.5%, Devon was down 3.0% and Somerset was down 2.3%.

Another big loser this month was Northamptonshire, where average values fell 3.4% and three bedroom properties fared especially badly, falling 6.6%. Average values in Essex also suffered a 1.6% decline but this figure was overshadowed by the huge 11.2% fall that three bedroom properties in the region suffered in the same period.

Andrew Smith, Head of Insight at Primelocation.com comments: “There is some news good this month for prime country values which, despite the large decline currently being seen in the mainstream market, prices remain 4.7% higher than 12 months ago. However, our index has shown a marginal fall in the prices for the second month in a row, which may indicate a more sustained downward trend. Until now, prime properties have remained largely unaffected by the credit crunch, but with the financial job losses seen in London over the past few weeks, only time will tell if this goes on to have a major impact prime country values”.

For further information, visit primelocation.com