News

Bankers bonuses boost price of luxury homes - The Telegraph

Price rises among properties worth more than £1 million come despite repossessions among typical British households reaching one in every 1,000.

It is the first time since the autumn of 2007 that every region covered by the Knight Frank survey has seen a rise in the price of luxury manor houses, farmhouses and cottages.

The biggest gains were seen in the Home Counties, the traditional heartland of bankers’ luxury properties. Average prices rose by 3.1 per cent during the last three months, and ended the year 1.4 per cent higher than at the beginning of 2009.

Andrew Shirley, Knight Frank’s head of rural property research, said: “The price of prime country properties in now increasing across the country as the recovery that started in London during spring 2009 continues to spread further into the regions. Property prices in the Home Counties have shown particular resilience.”

He described the rises as “incredible”, given the economic crisis following the collapse of Lehman Brothers last year.

Values across the whole of the country rose by 2.3 per cent in the final quarter of this year. It means buyers need £1.4 million to buy the average price country home.