Price growth in the country house market stood at 10.4 per cent over the last 12 months, figures from Knight Frank reveal, with manor houses again at the forefront of such increases.

The average price of a manor house now stands at over £3.1 million, the report indicates, with annual price growth of 21.2 per cent surpassing the 17 per cent price growth the sub-sector experienced in the 12 months to December 2006.

Manor house prices rose by an average of 4.1 per cent in the second quarter of 2007, the study found, with farmhouse prices rising by three per cent and cottages by 2.8 per cent over the same period.

"In June and July the volume of property sales agreed rose significantly – up 32 per cent on a year on year basis – meaning that the supply / demand balance has shifted. We believe the top end of the market will see stronger growth over the next six months," commented Liam Bailey, head of residential research at Knight Frank.

"The south-west region was the best performing region in the UK with property prices increasing by an average of 5.3 per cent in the first quarter of the year," Mr Bailey added.