Posted: Friday, January 13, 2012 3:23 pm

The results of the Knight Frank Prime Country House Index for the fourth quarter show country houses fell by 3% in 2011. 

Prime country house prices fell 1.7% in Q4 2011 after a 1.2% fall in Q3. The annual decline in prices has widened to 3.1% from 1.7% in Q3. Meanwhile prices of properties worth more than £5 million are still rising, up 0.2% on the quarter and 1.2% on the year Overall prices are 3% higher than post credit-crunch low in June 2009. The Home Counties market has been the most resilient, down 1% on the year, compared to a 10% decline in the North West. Sales volumes are flat on the year but applicant volumes are up 11%.

Grainne Gilmore, Head of UK Residential Research, comments: “Despite recent headline price falls, there are marked differences across the regions, with the Home Counties benefitting from money flowing from London and overseas."

Rupert Sweeting, Head of Country Department, adds: "Price falls in the North of England have been the most pronounced, with a 10% annual decline in prices. As the Eurozone crisis drags on, there is little sign that economic worries will be calmed in the months to come. 

"Despite this nervousness, overall demand in the market was steady in the final months of the year, with an 11% rise in new buyer applications and a 4% rise in viewings. Supply levels have also risen compared to last year, with a 12% rise in new instructions and higher stock volumes."