The data from Knight Frank also shows that prime property in towns and cities has out performed other sectors but performance varies widely depending on location.
And property viewings were 16% higher in the first three months of the year compared to the same quarter in 2013 which indicates that the prime country market has begun to reap the rewards of the wider property market recovery in the UK.
Increasingly buyers have been attracted to homes located in urban rather than rural settings, with local town and city markets out performing more rural counterparts.
Across the prime urban market, property prices increased by 3.4% between January and March and have risen by an average of 8.2% over the year to March 2014. Recent price growth in Sevenoaks, Winchester, Bristol, Bath and Oxford among others has been reflective of this, the report points out.
In contrast, price growth for rural properties has been lower. In the first quarter of 2014, prices increased by 1.7% and have risen by 4.1% on an annual basis.
The report also shows that the out performance of prime urban markets is even more evident on a longer term basis. Such properties are on average 2.8% below their previous 2007 peak. For rural properties the gap is wider, with prices around 16% below peak levels.
‘Excellent schools on the doorstep, the convenience of having local amenities nearby, as well as good transport links back to the capital are all big drivers of the prime urban markets, especially for buyers relocating from London who are also able to take advantage of the not insignificant price gap that currently exists,’ it explains.
Across the market, demand for prime country property remains strong, with the number of new applicants who registered their interest in buying a prime country house over the three months to March 2014 up by 10% compared to the same period last year.
In spite of the inclement weather in February, which threatened to make some rural properties inaccessible, viewings were up by 16% over the same time. ‘This increased demand led to a rise in the number of prime country house sales across the market in the three months to March, which were 21% higher compared to the same time last year,’ the report points out.
‘However, as we have noted previously, price performance remains dependent on property value. While average values of sub £2 million prime properties climbed by 2.4% between January and March, the value of houses worth £2 million plus was lower, with growth of 1.1%.
'The continued growth of popularity in towns and cities follows the demands of London buyers looking for a quieter lifestyle with excellent education and good communications to London but coupled with cosmopolitan characteristics such as fine restaurants et al. In effect a similar neighbourhood to that which they experience in London’s borough like Chelsea, Wandsworth and Fulham,' said Rupert Sweeting, head of Knight Frank Country.
'Across the market, demand for prime country property remains strong, with the number of new applicants who registered their interest in buying a prime country house over the three months to March 2014 up by 10% compared to the same period last year,' he explained.
'In spite of the inclement weather in February, which threatened to make some rural properties inaccessible, viewings were up by 16% over the same time,' he added.
