Prime country residential property markets in the UK experienced a higher level of growth during the first quarter of 2017, research has revealed.
Whilst levels remained flat during the second half of 2016, they increased by 0.8% over the last quarter, the latest report by Savills shows.
Million pounds away from home? Prime property sales outperform rest of the UK’s housing market
The growth range in Q1 is from 0.5% in the inner commuter region (anywhere that’s within 30 minutes travel time to London) to 1.0% in the South of England, the Midlands and the North.
Looking at annual growth, the prime country markets have been outperforming London for a while, since December 2014. This was also when higher stamp duty rates for properties with a value of £1m+ were introduced.
Therefore, the more rural markets have been less affected by the change, which led to an adjustment in price, the Savills report explains.
The report also pointed out that buyers continue to prefer buying in urban and village locations over rural areas. This is, according to the report, down to the need to access local amenities, transport links and good schools.
Within the more rural markets, smaller properties like cottages and farmhouses continue to win the popularity race against grand country houses.
Furthermore, the report explains:
“Uncertainty surrounding the impact of the UK leaving the EU is also expected to mean the market is exposed to short term fluctuations in sentiment over this period, in line with the outcome of negotiations, particularly now Article 50 has been triggered.”
“As the economy begins to improve we anticipate stronger levels of price growth to return to the market. Discretionary buyers will increasingly look to take advantage of the price gap between London and the country.”
The latest figures for 2017/2018 can be found here.
