"June was busy, and a number of deals were agreed in all price brackets, which means the next few months look even better for exchanges"
- James Cleland - Knight Frank
The second quarter of 2025 saw the most buyer-friendly conditions in the country property market for seven years, with increased supply and falling prices tipping the balance in favour of purchasers. According to Knight Frank, only once in the last 20 years has the landscape been more favourable for buyers.
In the three months to June, there were 5.9 new prospective buyers for every fresh sales instruction. During the height of the pandemic’s ‘escape to the Country’ surge, that figure stood at nearly 19, reflecting intense competition at the time.
The last comparable period in terms of buyer leverage was in the second quarter of 2018, when uncertainty around Brexit and the stability of Theresa May’s government weakened market confidence.
The country market refers to urban and rural locations outside London, with properties typically valued above £750,000.
A 9% year-on-year increase in new listings was recorded in Q2, driven by several overlapping factors. These included a backlog of stock caused by the March stamp duty deadline, buyers returning to the market following a politically turbulent 2024, regulatory pressure encouraging landlords to sell, and rising numbers of holiday homes being listed after changes to local council tax rules.
Stamp duty thresholds were amended in April, prompting buyers to complete before the end of March in order to maximise savings of up to £2,500, or £11,250 for first-time buyers.
This early surge in activity contributed to a quieter Q2 in terms of demand, with the number of offers made down 9% compared to the same period in 2024. The resulting mismatch between supply and demand placed further downward pressure on pricing, which in turn has encouraged more transactions.
Despite lower offer volumes, exchanges in June were up 7% year-on-year. It is worth noting that June 2024 figures were marginally suppressed by pre-election uncertainty.
James Cleland, head of the country business at Knight Frank, expects the trend to continue gaining momentum in the coming months.
“Prices are correcting and as a result, activity is noticeably picking up,” said Cleland. “June was busy, and a number of deals were agreed in all price brackets, which means the next few months look even better for exchanges. It's all about pricing. If you get it right, buyers pounce, but if you get it wrong, not a lot happens.”
The Country House Price Index showed a 3.5% drop in average values in the year to June 2025, compared to a 1.6% annual fall recorded in March. Over the latest three-month period alone, prices declined by 2.5%, the sharpest quarterly drop since Q1 2009, with the exception of that financial crisis period.
Sale prices also moved further from initial expectations. On average, properties sold for 94% of their original asking price in Q2. This figure compares to 97.3% during the same period last year and 99.7% in Q2 2022, highlighting a notable shift in negotiating power.
