Sales of high-value rural properties in the UK rose in June, offering a glimmer of recovery for the country house market after a prolonged period of falling demand and prices. According to new data from estate agency Knight Frank, the number of contracts exchanged for homes worth more than £750,000 rose by 7% year-on-year.
This uptick coincides with an increase in supply, as more properties are being listed for sale. Knight Frank reported a 9% rise in the number of country houses coming onto the market in the second quarter of 2025, compared with the same period last year. The surge has been partly attributed to second-home owners seeking to offload properties following changes to local taxation.
Tax changes push second homes to market
Second-home owners appear to be driving much of the increase in listings. Recent council tax reforms aimed at supporting local residents in popular tourist areas have introduced higher levies on second homes. In Wales, local authorities can now charge up to four times the standard rate of council tax on second properties, while councils in England can apply a 100% premium. These changes have encouraged more owners to sell up, especially in holiday hotspots where the additional tax burden has grown significantly.
James Cleland, head of Knight Frank’s country business, said the market was responding to more realistic pricing. “Prices are correcting and as a result, activity is noticeably picking up. June was busy, and a number of deals were agreed across all price brackets, which means the next few months look even better for exchanges,” he said. “It’s all about pricing. If you get it right, buyers pounce – but if you get it wrong, not a lot happens.”
Despite the renewed activity, prices continue to drop. Knight Frank’s index shows that the average price of a country house fell by 3.5% in the three months to June – a faster rate of decline than the 1.6% seen in the 12 months to March. This price correction is making rural homes more attractive to potential buyers who had previously held off due to inflated values.
The market has shifted dramatically since the height of the pandemic. Five years ago, demand for countryside properties soared as city dwellers looked for more space during lockdowns. The so-called “race for space” drove prices higher and created intense competition. At the peak of that boom, there were nearly 19 prospective buyers for every new country house listing.
Today, that figure has fallen to just 5.9 potential buyers per property – the lowest ratio since mid-2018, during the Brexit uncertainty under Theresa May’s government. This shift marks a notable swing in favour of buyers, who now have more room to negotiate.
Other market factors
Several other forces are influencing the current market dynamics. One is the stock overhang from March’s stamp duty threshold changes, which led to a temporary rush of activity followed by a lull. Additionally, political uncertainty in the past year had caused some prospective buyers to delay their plans. With a new government now in place and policy signals becoming clearer, many are resuming their search.
Knight Frank also noted that deals were being made across a broad range of price points – not just at the high end. This suggests renewed confidence among buyers who are increasingly willing to commit if they see good value.
While it’s too early to declare a full recovery in the country house market, June’s figures point to a cautious return of demand. Price-sensitive buyers are circling again, encouraged by more competitive valuations and a larger selection of homes. For sellers, particularly second-home owners facing steeper council tax bills, now may be the right time to find a buyer.
The coming months will test whether this recovery has legs, especially as the broader housing market remains sensitive to interest rates, economic confidence and regional policy changes.
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