The Knight Frank 'country homes index' rose by over 10% in the first half of 2004. This strong performance in country house prices followed a period of weakness during 2003, says the firm.

On average prices in 2003 fell by 0.5% in the three country property categories monitored by Knight Frank. This figure disguises the fact that Manor House prices in the South East declined significantly by 7.0% through the year.

The weakness in the market in 2003 was due to:

• A lack of confidence that stifled the country house market during the Iraqi war
• The poorly performing stockmarket
• The absence of City bonuses
• A significant fall in the number of foreign buyers - especially those from the US

1. Manor houses
   Manor house prices rose by 9.7% in the year to June 2004. A typical manor house comprises a large property standing in its own, usually extensive, grounds with a private drive.
2. Farmhouses
   Farmhouses rose by 13.0% in the year to June 2004. A typical farmhouse has between 5 and 6 bedrooms, several acres of land including garden, paddock and barns.
3. Country cottages
   Prices have also risen at the lower end of the country house market. Country cottage prices were 12.7% higher in June this year compared to 12 months earlier. A typical example has up to one acre of land, is detached, and has three bedrooms. Sinodun Cottage [see photo] is one example currently on the market for just under £460,000. This is a Grade-II listed thatched cottage in South Oxfordshire.