Country Market Stirs into Life as Asking Prices Fall

Knight Frank reports that Q2 2025 was the best market for buyers in its Country segment, which covers urban and rural homes above £750,000 outside London, for seven years. Conditions have been more favourable to buyers only once in the past two decades.

There were 5.9 new prospective buyers for every new sales instruction in the quarter, compared with almost 19 at the peak of the pandemic-era rush to the country. The last time buyers held this much negotiating power was Q2 2018, amid uncertainty over Brexit and the government.

New instructions were 9% higher than in 2024. Reasons include unsold stock left over after the March stamp duty deadline, buyers reviving plans shelved during last year’s political upheaval, landlords selling because of regulation, and second homes coming to market after council tax changes. Meanwhile, offers fell 9% as demand had been brought forward into the first quarter.

Prices have come under pressure as a result. The Country House Price Index fell 3.5% in the year to June, and 2.5% in the quarter alone, the second-sharpest quarterly fall since early 2009. Sale prices averaged 94% of the initial asking price, down from 97.3% a year earlier and 99.7% in Q2 2022.

Lower prices are, however, drawing buyers back. June exchanges were 7% higher than a year earlier, and James Cleland, head of the Country business, expects momentum to keep building, stressing that correctly priced homes attract buyers quickly while overpriced ones do not.

Source: Knight Frank Newcastle, original article (22 July 2025)