According to recent reports properties in rural areas are now feeling the effects of the housing slump and the global credit crunch, with the value of homes in rural areas having fallen by 7.9 percent in the space of a year. This includes cottages and country mansions, and with fewer people now able to afford a second country home many homeowners in these rural areas are finding that their properties are becoming increasingly difficult to shift when they are put up for sale.

In the past three months rural properties that are valued at between £450,000 and £5 million have fallen by 4 percent, and this is the largest drop seen since 1995 according to industry experts. It was thought that rural properties had managed to escape the housing slump and severe price falls, but these figures show that the problems are now starting to affect rural properties, with homeowners having to cut the asking price on their homes.

One estate agency official said: ‘Vendors were slower to cut guide prices in this sector of the market, hoping the credit crunch would not affect them. But they have realised they are not immune to the downturn and are agreeing to lower their expectations.’

He added: ‘Now that the prime sector appears to be in step with the general housing market it will be interesting to see if this continues or whether there is a sharper correction still to come at the top of the market.’

The figures did show, however, that properties that were valued at more than £5 million had actually increased slightly in value. The worst hit properties in rural areas have been cottages, as those interested in purchasing this type of property tend to rely more on credit, which is currently very difficult to obtain.

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