Bag Yourself a Country Cottage Bargain
Luxury homes, farmhouses and cottages are facing the biggest drop in value in over 10 years, as the market starts to slow in rural areas.
Homes located in sought after areas of the countryside are starting to come down in value, in response to the slowdown of the rest of the property market.
Houses valued between £450,000 and £5m have seen the most significant drop, with average prices falling by 4% in just the last three months. This is the worst drop seen since 2005 and, in the last year, the total number of rural properties sold has dropped by nearly 8%.
Although vendors have been slow to reduce property prices in comparison with more urban areas, the latest figures show that sale prices have been dramatically reduced in order to find buyers – making this the perfect time to invest in your own country getaway. It is not all bad news for rural property owners, those at the top end of the market – houses worth £5m+ - have actually increased in value, albeit only slightly.
Cottages have seen the biggest downturn in sales, as it is these that people tend to buy as their second home. During periods of financial hardship it is assets such as these that are the first to go, as people look for ways to tighten their belts.
Experts predict that the sale of the most expensive country mansion on the market will act as a benchmark for other investments. One such property is Encombe House in Dorset, a property on the market for £25m, which has only changed ownership 5 times in over 1000 years. Whether or not the house sells for this amount remains to be seen, but as it was bought for approx £15m in 2002 the current owner looks set to make a substantial profit.
Prices have fallen in all regions over the last three months, but the least affected area was the North East. It will be interesting to see whether this trend continues over the next quarter.
