The value of top-end country properties has fallen sharply in the past 12 months, with average prices down 7.8% to £4.3million, with a £365,000 drop recorded between the first quarter of 2025 and the same period this year, according to the latest research by Savills.

The upmarket estate agency is blaming the downturn on a combination of geopolitical instability and domestic tax uncertainty, which have weighed heavily on buyer confidence.

Frances McDonald (pictured), Director of Residential Research at Savills, told the Daily Mail: “Countryside properties saw some of the steepest price corrections in the last year amid uncertainty around the Chancellor’s Budget last November.

“Demand softened throughout 2025, particularly in second-home hotspots where pandemic-era price growth has been steadily unwinding, placing sustained downward pressure on values.”

Price sensitive

She adds that prime rural homes, which saw strong demand during the pandemic, are now proving particularly sensitive to shifts in sentiment, with buyers more cautious as costs and uncertainty increase.

Although home values showed signs of stabilising towards the end of last year, she warns that renewed volatility is already feeding through to the market.

“Improved sentiment across regional markets risks being short-lived as mortgage rates climb in response to economic disruption. But total impact will ultimately depend on the length of the conflict.”

A smaller pool of committed buyers will look to take advantage of reduced competition.”

She also highlights changing market dynamics, with fewer active buyers and a greater emphasis on realistic pricing.

“A smaller pool of committed buyers will look to take advantage of reduced competition and value on offer. Even so, sellers, this spring and summer, will need to stay realistic on pricing.”

McDonald says the recovery across the prime market is now likely to take longer than previously expected.