Price Drops and Tax Rules Spark Revival in UK Country House Sales

The UK’s country house market is on the upswing, with a 7% increase in sales of properties over £750,000 in June compared to a year ago. The recovery is being driven by falling prices and a flood of new listings from second-home owners facing higher council taxes.
Knight Frank reports that the number of country homes entering the market jumped 9% in the second quarter, as new tax regulations in Wales and England make it more costly to hold second homes. This has led to more homes for sale and more opportunities for buyers.
Prices have fallen 3.5% in the past three months, giving buyers more negotiating power than at any time since 2018. The number of buyers per listing has dropped sharply, making it a buyer’s market.
James Cleland of Knight Frank points out that correct pricing is key to attracting buyers, with activity picking up wherever homes are realistically valued. The present market stands in contrast to the pandemic-driven rush for rural homes.