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Country prime in decline

After a strong period of price growth throughout the summer, prime country property prices have started to slip into reverse, down 0.4% in November, and falling for the second month in succession, according to PrimeLocation.com...

A contributory factor is the sheer volume of property for sale currently on the market, which in November is some 44.9% higher than the same period last year.

Agents continue to report properties being on the market for much longer than average, while sellers hurry to get their properties to market before any significant price drops occur, causing property stock to accumulate to record levels.

Every region, except the South West, is experiencing a fall in prices in November, with the South East being the hardest hit, with prices down 1.4% since October. In particular, the Home Counties have seen the most significant price reductions.

Areas such as Bedfordshire (down 4.7%), Berkshire (down 3.7%), Buckinghamshire (down 1.9%), Surrey (down 1.4%) and Hertfordshire (down 1.4%) have seen the most significant price falls.

In the South East, too, the number of properties on the market in November has increased significantly, up 7.4% from October, much higher than the average monthly rise of 3.4% seen across the wider prime country market. Like the prime London sales market, a reduction in active buyers and a flood of property stock have led to a fall in prices.

The Royal Institution of Chartered Surveyors reported in November that new buyer enquiries declined for the eleventh consecutive month as demand continues to wane in the face of falling prices. For the remainder of 2007, we expect the continuation of a decline in average prices as the traditionally quiet Christmas period closes in.