14 June 2012, The residential farmhouse market in the eastern region witnessed a fall in values in the first quarter of this year (2012) but, as a niche slice of the market, the lack of supply cushions properties of this type against sharper reductions across the wider property market.
That’s the verdict of property consultancy Carter Jonas in its latest Farmhouse Index, which is a report by the firm’s head of research, Catherine Penman in to this select, premium part of the residential property market.
Values in the Index fell in all regions, throughout the UK, apart from the South, during Q1 2012 when set against values in the last quarter of 2011.
The average value of a farmhouse in the eastern region is £1.37 million which represents a 1.0 per cent decline in Q1 2012 which, advises Catherine Penman, is largely attributable to an overall lack of openly marketed stock.
Demand in the southern region, which at £2.3 million for the average value of a farmhouse, is primarily driven by young families of high-net worth individuals who are exiting a prosperous London residential market and seeking quality of life and educational benefits outside the capital.
In addition to lack of supply, the lower reliance on lender funding - which is typical of buyers in the farmhouse market - further ‘plumps’ the cushion in this market sector when it comes to its resilience.
Catherine Penman concludes: “Despite the falls in values witnessed throughout the majority of the country, the outlook for the farmhouse market provides good opportunities for serious purchasers who are bidding cautiously but with genuine intent. A Grade II Listed, former farmhouse dating back to the 16th Century set in over 4 acres of secluded grounds with useful outbuildings and adjacent converted Granary cottage on the outskirts of Linton, Cambridgeshire with a guide price of £1,750,000.