The British countryside has seen activity for luxury homes pick up despite static prices.
Across the U.K., prime country home prices rose 0.1% in the second quarter, bringing the annual price gain to a slim 0.2%, according to a report Thursday by Knight Frank, a London-based property consultancy.
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But Knight Frank’s analysis found increased activity despite the flaccid price growth and the lingering effects of increased stamp duty, a tax on property sales, that has cooled the luxury market across the U.K. Knight Frank defines prime country homes as those priced over £2 million.
Analysts pulled out data for May and April and found that prime sales rose by more than 50% during those months compared to the same period a year ago. Activity between April and May was also 29% higher than the same period in 2015.
"While viewings data and sales volumes points to a more active market, this is not being accompanied by a rise in prices," said Oliver Knight, Research Associate at Knight Frank. Rather, "vendors who are realistic about pricing are achieving sales."
The pickup in transactions indicates that the British countryside has been able to weather political and economic uncertainty around Brexit and the June general election.
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Recent activity points to other trends in the market: Luxury homes are selling by good schools and transportation links, particularly in towns and small city markets. Towns saw some of the greatest growth during the second quarter, with prime home values increasing 1%, according to Knight Frank.
Meanwhile, tight supply in prime country homes continues to constrain activity and could lead to price pressure later on. Knight Frank predicts that prime country homes will see prices increase a total of 1.5% by the end of 2017.