Residential and commercial property elements on country estates are starting to regain value, according to Savills research, and leading to “interesting” potential capital growth prospects.
Non-agricultural components on a typical English country estate have been holding them back in the last few years, but there are signs this could be changing. While land values have doubled in three years, many estates have been left worse off after deductions for weaker elements in the property portfolio, including residential and non-agricultural components such as commercial lettings.
The total value of an English country estate is still 0.3% lower now than it was in the peak year of 2008, before the economic crisis took hold of markets, but estate cottage values, for example, rose by an average of almost 4% during the first half of 2013.
Evidence of improving marriage value is perhaps the clearest indicator of an improving sentiment in the estates sector, says Savills.