Scotland, which previously showed particular resilience, fell 6% in the last quarter. Cracks are starting to appear at the very top end, though values in the £4million+ bracket remain marginally positive year on year.
Latest figures from Savills research department show that prime regional and country house values are now being affected in much the same way as the prime London markets. Average prime regional values fell by 5.6% during the third quarter following a 4% fall in the preceding quarter, to leave values 10.2% lower than a year ago.
Quarterly falls in value have been similar across all the regions. Scotland, which had previously shown the most resilience during this downturn fell by 6% during the quarter with falls for the year to date now at 6.9% for the region.
Lucian Cook, director Savills research comments, "The figures confirm that this downturn does not discriminate by region, which reflects the fact that sentiment is being adversely affected across the country, particularly by the weakened outlook for the economy and the severe restrictions on mortgage finance,"
The manner in which sentiment has weakened and the mortgage net has tightened have been reflected in how transaction numbers have fallen. In the prime regional markets transactions were 15% lower in the first quarter of 2008 compared to the previous year. In the third quarter this figure had increased to 50%.
Cook again, "Buyers know where they are comfortable in bidding in current market conditions, and those vendors who price realistically are selling. Rates of sale will stabilise once buyer and seller expectations are fully aligned which we expect to take another six months.
"As might have been expected the proportion of buyers from the financial and business services sector has fallen from 32% to 26%, but surprisingly across all other purchaser categories numbers are similar and the reasons for buying and selling have not dramatically changed between 2007 and 2008. Other than in the highest price brackets the effect has been universal."
Across the price bands the very top end, over £4million, is still showing growth for the year to date of 2.2% despite a small fall in average values during the last quarter. All other price bands are now in negative territory with the uncertainty in the City having a knock-on effect in the £1m-£2milion and £2million plus markets.
Crispin Holborow, Director of Savills country department comments, "We are now seeing a real move towards quality property. There will always be exceptional sales which will buck the market trend where buyers have either a major reason to buy or are taking a long term view".
