Figures released today show continued growth in the Prime Country House Market, particularly for properties priced over £2million. Whilst the index for all properties showed quarterly growth of 2.8%, properties worth over £2million showed growth of 4.80% in the second quarter of 2007.
‘Whilst overall the prime country house market has shown growth marginally above the mainstream market in the past 12 months, much higher growth has been concentrated at the top end,’ said Lucian Cook, Director of Savills research.
In 2006 this additional growth was highly evident in the £5million plus bracket where performance has been comparable to Prime Central London, according to the report. ‘This reflected a market essentially driven by the same dynamics ? a significant pool of wealth chasing a relatively constrained level of stock’ said Mr Cook.
In the first half of 2007 growth levels above £5 million stabilised whilst prime central London has pulled away, the research says. ‘In the first two quarters of 2007, the £2million to £5million country house market has particularly benefited from the spin-off demand emerging from London,’ Mr Cook continued. ‘Whereas vendors expectations in the £5 million plus market have resulted in robust asking prices, less aggressive pricing has acted to generate more competitive bidding in the £2million to £5million bracket. Accordingly, property owners in this bracket have been able to more readily capitalise on the demand supply imbalance, which was acute at the beginning of the year, and as a result growth rates have accelerated.’
For the rest of the year Savills says its expects the country house market to continue to outperform the mainstream market, particularly at the top end where it is less exposed to interest rate movements. ‘Applicant numbers remain strong and there remains pent up demand, although HIPs and a general slowing in the mainstream market may temper growth in coming months,’ he concluded.