The prime country house market over £2 million remained flat on average across England with small falls experienced in Scotland.
The introduction of the new rate of stamp duty however has effectively created a price vacuum between £2 million and
£2.5 million, and until vendors adjust their expectations this price bracket is largely in limbo.
The property markets closest to London have benefited from the buying power of the international buyer, who dominates in these locations. In the Home Counties, values are now 8.9% above peak following a second quarter rise of 1.9%.
To a lesser extent this international force has benefited the South East and the Cotswolds, where these buyers are beginning to buy homes often to be near their children’s schools.
So far this year, international buyers have accounted for 25% of all sales in the £2 million+ price range, which is higher than the average for the past three years (17%). Across all regions of England, the majority of international buyers were Russian.
Bucking the trend
The real success story of this year so far is the private estates situated just outside London, such as St George’s Hill and
The Wentworth Estate. In St George’s Hill where transaction numbers during the last six months are three times higher than during the same period in 2010, the average sale value is now just under
£5 million. Values on both estates have bucked the trends seen in
the rest of the region to see high levels of price growth.
Average values are now 19.3% above their previous peak in 2007, outperforming prime London and keeping pace with Prime Central London.
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