According to Knight Frank, exchanges of contracts for country houses worth more than £750,000 increased by 7 per cent in June compared to the same period last year.
This uptick in activity comes as more properties hit the market while prices continue to adjust downward.
The number of country houses coming onto the market rose by 9 per cent in the second quarter compared to last year, with second-home owners driving much of this increase.
Recent council tax changes designed to benefit local residents in popular holiday destinations have influenced this trend, with Welsh councils now able to quadruple taxes on second homes and English councils permitted to double them.
James Cleland, head of the country business at Knight Frank, said pricing was important in the current market.
“Prices are correcting and as a result activity is noticeably picking up,” Mr Cleland said.
“June was busy, and a number of deals were agreed in all price brackets, which means the next few months look even better for exchanges.
“It’s all about pricing.
“If you get it right, buyers pounce but if you get it wrong, not a lot happens.”
The estate agency reported that average country house prices fell 3.5 per cent in the three months to June, a steeper decline than the 1.6 per cent drop recorded in the year to March.
This price correction has created favourable conditions for buyers who are now in a stronger negotiating position.
Several factors have contributed to the increased supply of rural properties, including a stock overhang from March’s stamp duty deadline and buyers reviving plans that were previously put on hold due to political uncertainty.
The market dynamics have shifted significantly since the pandemic-driven “race for space” that occurred five years ago when lockdowns prompted many city dwellers to seek countryside homes.
Knight Frank’s data shows there are now only 5.9 potential buyers for every new country house listing, compared to nearly 19 at the height of the pandemic exodus.
This represents the most favourable market for buyers in seven years, with negotiating conditions not seen since the second quarter of 2018 during the Brexit negotiations under Theresa May’s government.
The combination of increased inventory and falling prices has created what Knight Frank describes as “the most favourable market for buyers in the country for seven years,” suggesting that those looking to purchase rural properties now have a significant advantage in negotiations compared to recent years.
“If you’re a buyer in today’s market, you have options that simply weren’t available during the pandemic boom,” Mr Cleland said.
“The pendulum has definitely swung in favour of those looking to purchase, but sellers who price realistically are still finding success.”
