The UK’s prime country house market is gaining momentum, with a 7% rise in sales of homes over £750,000 in June compared to last year. The boost is linked to falling prices and a surge in listings as second-home owners react to new tax measures.
Knight Frank reports that councils in Wales can now quadruple taxes on second homes, while English councils can double them, prompting many owners to sell. This has led to a 9% increase in country houses entering the market during the second quarter.
Prices have dropped more sharply recently, with a 3.5% decline in the three months to June. Buyers now have more negotiating power, with fewer competitors for each new listing than at any time since 2018.
James Cleland from Knight Frank notes that the market is busiest where prices are set correctly, as buyers move quickly on well-priced properties. The current environment contrasts sharply with the frenzied demand of the pandemic years.