Latest data from Knight Frank reveals that prime country house prices are set to continue increasing through 2014 after rising again during the final quarter of 2013.
The average price of a prime country house in England increased by 1.4% in the final quarter of 2013 – the biggest quarterly increase in prices in more than three years.
On an annual basis, prices have risen by 3.1%.
However Knight Frank said that price performance was becoming increasingly dependent on the value of a property: homes worth under £2m increased by an average of 1.7% over the last three months, while price growth for properties in the higher price brackets was more muted.
Higher stamp duty charges for £2million+ properties, introduced at last year’s Budget, were a key driver behind stronger growth from the lower price brackets.
The average value of a home worth between £2m and £3m rose by 1%, while the price of properties worth between £3m and £4m climbed by 0.4% between October and December. However, the average price of a home worth between £4m and £5m fell by 0.3% over the same time period.
Despite this, prices of "super-prime" £5million+ homes proved more resilient due to low stock levels increasing by 2% in Q4.
According to Knight Frank, demand in the market remained strong with more new applicants registering and property viewings increasing over the same period.
Knight Frank said that better economic conditions and the improved buyer confidence meant that the prime country house market should grow by an average 3.5% this year.
“2013 has seen the market pick up month on month after a slow and late start," said Rupert Sweeting, Head of Knight Frank Country.
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