THE price of desirable country properties is rising again as a revival at the top end of the London market ripples out to more rural areas, new research has indicated.

The average cost of a manor house, farmhouse or cottage rose by 0.5% during the first three months of the year to stand at £1.4m, according to estate agent Knight Frank.

The rise, which wiped out some of the falls seen during the second half of last year, left top country properties costing 1.8% more than in the first quarter of 2010.

The group attributed the increase to the revival which has been seen in the London market since the autumn, as well as a shortage of good quality country homes up for sale.

It said foreign buyers were currently purchasing around half of all properties in the capital that sell for more than £2m, and some of the sellers of these properties were now looking to relocate to the country.

Liam Bailey, head of residential research at Knight Frank, said: “Prices in London are 30% higher than they were in March, 2009. In the country, prices are up only 7% over the same period.

“This means that someone selling in London and moving to the country has more than 20% additional spending power now, compared to two years ago.

“While we ought not to expect rapid price growth from this point, it would seem fair to assume that the best country house properties will see further rises over the next few months.”

Farmhouses saw the biggest price rises in the first quarter, with their cost rising by 0.9% to average £1.2m.