Country house market hit as sellers get cold feet at last minute

The country house market is waning, according to Knight Frank, as wealthy buyers get cold feet at the last minute and walk away from deals.

Prices of all but the most expensive rural properties fell 3% last year – down 1% in the home counties, and down 10% in the North-West.

Only properties priced at £5m-plus are holding their value, says the firm.

It also reports flat sales volumes, although applicant numbers are up 11% and viewings up 4%. Supply levels have also risen.

Knight Frank says that buyers moving out of London, where prices have reached record highs and where there is no shortage of rich foreign buyers, are key to the country house market.

But Rupert Sweeting, head of Knight Frank’s country department, said: “The real sticking point has been in converting offers into sales. The rate of withdrawal for buyers who have agreed to purchase but who withdraw prior to exchange of contracts has risen sharply within the last year. 

“Issues securing mortgage finance and increasing nervousness about the economic outlook have been the main reasons that buyers have walked away from deals at the final stages.”

Meanwhile, Savills is running a ‘Time to head for the country’ campaign, aimed at tempting wealthy Londoners to sell up and move out. Its current adverts say that the country offers ‘exceptional value’. It, too, would have no difficulty selling London property to any number of wealthy international buyers – and badly needs the stock.

Also thinking along the same lines is Jackson-Stops & Staff. Dawn Carritt, director of its country house department, is hopeful that London home owners will cash in their equity and move to homes in the country.

She said: “Those who are prepared to move away from the highest priced areas will find opportunities to purchase good properties while investing less. This should be helpful to areas where house prices have dropped as a result of the recession.”

*Growing numbers of foreigners – especially Russians – are buying property in Oxford.

Estate agents told the Oxford Mail that 40% of the city’s top properties are being sold to international buyers, with15% of them going to Russians.

According to Knight Frank, nearly 40% of its house sales in Oxford last year were to overseas buyers.

City council deputy leader Ed Turner said: “Oxford is a remarkable and very beautiful city with a worldwide reputation, and it would be surprising if people with a lot of money did not want to add a home in Oxford to their ski chalet in St Moritz or their summer beach home in St Tropez.”

We’re not sure what Morse would have made of it, though.

Russian oligarchs snapping up properties in Oxford

https://www.oxfordmail.co.uk/news/9471918.Russian_oligarchs_snapping_up_properties_in_Oxford/