THE REVERSE RIPPLE EFFECT: HOW THE COUNTRY MOUSE IS LEADING THE TOWN MOUSE

Despite a challenging landscape for buyers and sellers, from the viewpoint of a buying agent working in the country market, it is turning out to be a surprisingly good year. While the country market is far from immune to what is going on elsewhere, of course, there are promising signs of activity and deals being done.

The property markets in London and the country are usually connected, with the capital leading the way; as activity increases in London, it produces a ripple effect out to the suburbs and the home counties as the country follows. However, this year it feels as though the reverse has happened; the country market, although patchy, is moving at pace, while London has lagged. In the country, we are finding that sellers are starting to be more realistic on pricing, because they have more of a need to sell. As Frances McDonald, director of residential research at Savills, comments in their latest report: “There is a sense that buyers are beginning to realise the value on offer in the country house market, where larger price adjustments have come earlier and there are the first signs of a shortage of new stock coming to the market”.

The London property market can be much more discretionary than in the country, which explains why there hasn’t been the same level of recovery in activity, so far. In many instances, there is still too much of a gap between buyer and seller expectations, with London assets often held by international owners who don’t need to sell, and buyers feeling increasingly uncomfortable with the excessive stamp duty tax, which is stifling activity. 

There is also a lack of the usual international buyers one would expect to see in London as the Government gives the impression that the UK is not open for business. Unfortunately, the message coming across is that international money is not welcome, whereas the Government should be actively encouraging overseas investment in the UK.

In the country, meanwhile, buyers are taking advantage of the lack of international competition – aside from some Americans and a smattering of Europeans – and proceeding with transactions. On the ground, this is the experience of the country team at Prime Purchase. Personally, I have had my busiest year in five years, while my colleague James Shaw, who covers the Chilterns and Oxford, is also having his best 12 months in a long while, transacting on quite a volume of deals. Meanwhile, James Watts, who covers Hampshire, West Berkshire and Wiltshire, is out every day this week with different clients looking at houses. The other members of the team – Mark Crampton, Paddy Pritchard-Gordon, Dominick Brown and Gemma Maclaran – are similarly busy with current clients and new enquiries from buyers fresh into the market who feel now is the time to purchase.

Even trophy assets and discretionary purchases are trading at sensible money as vendors who are serious about selling take advice and enter the market at realistic pricing levels. It feels like an opportunity for country buyers; surely it is only a matter of time before people realise London is also looking like good value?