Last year the market for the finest country houses and rural estates recorded the sale of 32 per cent more £5 million+ properties and 23 per cent more £10 million+ sales than in 2021. At the very top end of this rarefied sector of the UK housing market, meanwhile, there was a 118 per cent increase in sales over £20 million.
We saw a significant rise in the number of international buyers attracted to this prime real estate as overseas travel became easier, and the strength of the US dollar compared to sterling offered value.
But what was it that motivated owners to sell?
One of the main drivers behind these particularly strong transaction levels was the decision simply to get on with it. By the autumn, some clients were taking a view on the market and accepting a fair rather than premium price in the knowledge that challenging economic headwinds could change market conditions. This change in attitude led to the sale of some £20 million+ properties that had been on the market for some time.
What does this mean for 2023?
Potential buyers may now have the feeling that there are opportunities to be had following the past few years of unprecedented demand which, according to our research, saw average value growth of 17.5 per cent for £5 million+ homes from March 2020 to December 2022.
So far this year there are clear signs that transaction volumes are continuing and if activity carries on at this level we could see another period of firm pricing.
Early indications suggest momentum will be maintained. At the end of January, we had registered the highest number of buyers looking for £5 million+ homes since our analysis began in 2018 with registrations up +8 per cent compared with January 2022. New registration numbers for February were not as strong but remained well above those recorded pre-pandemic.
Those purchasers hoping for an opportunity to buy a scenic gem in a pragmatic market may find the picture looks quite different as the year goes on.
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