UK Country Homes: A Turnaround Fueled by Strategic Pricing

A notable turnaround is unfolding in the UK’s high-value country house market, with sales of homes above £750,000 seeing a 7% increase in June over last year. This resurgence is primarily driven by owners adopting more realistic pricing strategies, which is effectively tempting buyers back into the market after a prolonged quiet period.
Knight Frank, a prominent estate agency, highlights that this boost in transactions comes alongside a greater supply of properties, particularly from second-home owners. New council tax regulations, which empower Welsh councils to quadruple taxes and English councils to double taxes on second homes, are playing a key role in bringing these properties to market. The second quarter alone saw a 9% rise in new country house listings year-on-year.
James Cleland, head of the country business at Knight Frank, emphasized the importance of pricing, stating, “It’s all about pricing. If you get it right, buyers pounce but if you get it wrong, not a lot happens.” He described June as a strong month for deals across all price ranges, suggesting a promising few months ahead for contract exchanges.
This renewed activity contrasts sharply with the post-pandemic “race for space,” which saw an initial boom in rural moves. Demand subsequently cooled, leading to average country house prices declining by 3.5% in the three months to June, a faster rate than the 1.6% fall in the year to March. This shift has resulted in a buyer-friendly market, with only 5.9 potential buyers for every new instruction, a significant drop from nearly 19 during the pandemic’s peak, and a leverage not seen since mid-2018.