However, due to uncertainty, they have acted as a brake on growth in recent months.
For seven consecutive quarters, prices in the prime country housing market have been steadily rising during the longest period of sustained quarterly price growth since 2007.
Prices have climbed on average by 5.6% over the last 5 years but still remain 16% below the previous peak. In the capital, prime house prices have swollen by 74% and are currently sitting 32% above their previous peak, making the country look good value for those wishing to escape the city.
But there are signs that the momentum seen in the first half of the year is easing. Uncertainty over the outcome of the general election, an impending interest rate rise, tighter mortgage lending and ongoing talk of ‘Mansion Tax’ have all cooled demand.
The number of prospective buyers registering their interest in buying a property during the three months to the end of October fell by 9% year-on-year. As a result, price growth for prime country houses slowed to its lowest level in almost two years during the third quarter, with values increasing by just 0.3% over the three month period. Annual growth also slowed, to 4.7%.
Against this backdrop, we are forecasting price growth of 2% across the prime country market in 2015. Such modest growth should ensure Londoners eyeing a move to the country will continue to benefit from eye-catching price differences
