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Rural property prices start to slow

Rural residential property price growth has slowed in southern England to 0.9% in the quarter to 1st December, according to new research from Cluttons. On an annual basis, prices have risen by 9.5%, stemming from strong growth in the second and third quarter of this year.

The rural residential property market is currently being driven by smaller properties which have seen the most activity; buyers at the upper end are becoming more cautious, especially in areas dominated by London buyers, or buyers affected by events in the city. Country cottages have experienced the strongest price growth in the last quarter, 2.1%, in comparison to country houses, which saw prices fall by 1.1%.

Jane Boyce, research analyst at Cluttons, said:

“The levels of demand and supply have remained fairly constant over the last quarter, although the urgency has definitely eased in the sales market.”

“Buyers are taking their time deciding on a property and once chosen, are becoming increasingly difficult if any problems are highlighted in a building survey, or there are disagreements over fixtures and fittings or exchange and completion dates. Buyers are also becoming more price sensitive and many are no longer willing to stretch themselves financially.”

“Vendors too are becoming more realistic about prices and many are either accepting offers under the asking price or reducing their asking price if they wish to sell quickly.”

Of the three areas within southern England covered by this research, the south west achieved the highest price growth in the last quarter. After experiencing the lowest price growth in the previous quarter, values rose by 1.4% in the three months to 1st December. The shortage of good quality small properties available to buy has been the main reason behind this growth.