As recent trends from the pandemic have shown, many people living in urban areas have been in search of larger properties and access to greener locations, promoting demand for prime country homes. This movement has been a driver of sustained price growth for the top end of the country house market as average values have increased by 14.0% since March 2020.

However, in light of more recent economic pressures, the rate of house price growth has begun to slow. The more discretionary country house markets, where buyers tend to be less reliant on mortgages, are somewhat insulated from rising interest rates and inflationary pressures. Even still, values fell by -1.5% in the three months to June 2023, leaving them down -4.4% annually. Buyers have become more cautious with discretionary spending and are now more acutely aware of their budgets.

There has also been significant regional variation. The Scottish country house market, which offers more value and stock remains constrained, has outperformed with marginal growth of 0.5% in Q2 2023. This is in contrast to areas in the South of England such as the South East, Cotswolds and Surrey where values have fallen by between -1% and -5%.

Other top performing markets since the pandemic include coastal areas which possess desirable lifestyle qualities for buyers. This demand is evident as those prime country houses with a coastal view cost an average of £1,054 per square foot, almost double that of those with no views. Country houses located on the coast also recorded the smallest quarterly falls of -1.0%, leaving them up by 20.2% since March 2020.

Looking ahead, cost of living pressures and economic uncertainty are likely to mean price growth continues to slow across the prime country house markets. Buyers will therefore maintain a cautious approach to discretionary spending and sellers who price realistically will attract the most interest. That said, the country house market tends to be driven by flows of global equity and, although not immune, will continue to hold up more strongly against economic uncertainties.