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News: Country House Prices Plummet

Tue, 16 Sep 08

The value of prime country homes, including farmhouses, cottages and manors, is falling at its fastest rate for 13 years.

Latest figures from estate agent Knight Frank for the third quarter of 2008 show that prices for these top end properties fell by 4%, the sharpest quarterly decline since the figures were first compiled in 1995.

The average cost of these properties has now fallen by just under 8% over the past year.

Andrew Shirley, Knight Frank's head of rural property research, said: "Vendors were slower to cut guide prices in this sector of the market, hoping the credit crunch would not affect them. But they have now realised they are not immune to the downturn and are agreeing to lower their expectations.

"Now that the prime sector appears to be in step with the general housing market it will be interesting to see if this continues or whether there is a sharper correction still to come at the top of the market."

Owners of properties at the bottom end of this luxury market such as cottages have taken the biggest hit.

The average value of cottages is still £500,000, but this is 11% less than the same time last year.

Farmhouses have seen a 7.5% annual fall and manor houses have had 5% shaved off their value over the year.

The value of top end rural properties fell the most dramatically in the West Midlands, East of England, Wales, the South West and South East of England. The East of England saw the biggest annual fall of 10.8%.

In contrast top end rural properties in the North-East of England are bearing up and saw an increase over the year of 5.2%, however this may not continue as figures for the third quarter revealed a fall of 1.6% in this area.

By Joe Lepper


See Also – Home Information, Asking Price Index

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