Country House Comeback: Sales Up as Market Finds Its Footing

The UK country house market, encompassing homes over £750,000, is showing clear signs of a comeback, with sales rising by 7% in June compared to last year. This renewed activity suggests the market is finding its footing, driven by more attractive pricing after an extended period of subdued demand.
Estate agency Knight Frank notes that this increase in exchanged contracts aligns with a growing number of properties available for sale and ongoing price adjustments. A key factor in the rising inventory is the influence of second-home owners, many of whom are now listing their properties due to recent council tax changes. These changes grant Welsh councils the power to quadruple taxes, and English councils to double them on second homes, contributing to a 9% increase in new country house listings in Q2 compared to last year.
James Cleland, head of the country business at Knight Frank, described June as “busy,” with a significant number of deals being agreed across all price brackets. He is optimistic about the coming months for exchanges, reiterating that “It’s all about pricing. If you get it right, buyers pounce but if you get it wrong, not a lot happens.”
This improved sentiment follows a period of cooling demand after the post-COVID “race for space.” Average country house prices fell by 3.5% in the three months to June, a more rapid decline than the 1.6% drop in the year to March. This price correction, combined with increased supply, has created a more favorable environment for buyers, who now face only 5.9 potential buyers for every new listing, a sharp contrast to the nearly 19 during the pandemic’s peak.