At Experience Invest we explore all areas of investments, from residential and student accommodation to care home investments, which is why the recent news that prime country house prices are rising caught our attention.
A report by the world’s leading independent property advisor, Knight Frank, reveals that prime country property prices rose by 0.7% between July and September. And, according to the research, prices have been steadily increasing over the last two to three years, despite the impact of stamp duty.
Prime country property vs a London home
Despite this, prime country property prices have still not returned to their pre-recession values, while London continues to experience strong growth. Buyers wishing to move out of the city to the country are at a definite advantage.
The Knight Frank report recognises this, stating: “The rise in London prices in the last few years means that buyers looking to swap the city for the country are able to get a lot more property for their money, with such buyers able to take advantage of the relative discount which currently exists.”
According to Property Wire, the online residential and commercial real estate news channel, prices for homes in the prime country property sector (over £1.5 million), rose by 2% in the last year. Whereas prices of prime market properties below £1.5 million, rose by twice as much (4%) during the same period.
Increasing demand for urban living
The slower rate of growth in prices of prime property over £1.5 million may be a result of increasing stamp duty land tax – which is applied at 12% for properties in this sector. Another possible explanation is the growing demand for urban living.
The prime property market below £1.5 million is buoyant, especially in London. Other cities such as Oxford and Bristol, which offer good schooling and transport links, are also increasingly popular with families and commuters.
The Knight Frank report says “there remains a significant price differential between property prices in the prime country market and in London, while anecdotal evidence from agents suggests that there is pent up demand from buyers in the Home Counties and the South West. This could help underpin prices and an increase in activity levels across the market as the year progresses.”
About Experience Invest
Experience Invest is a London-based independent property specialist. We focus on sourcing real estate opportunities across the UK. The company has been featured in The Telegraph newspaper and on Yahoo Finance.
If you are interested in finding out more about the services offered by Experience Invest or would like to see our full selection of residential buy-to-let properties, please visit the website.