'Perfect storm' hits house prices in the Cotswolds as demand for homes in some of Britain's most sought after postcodes plummets

By MARK DUELL, DEPUTY CHIEF REPORTER (DIGITAL) Published: 01:08, 9 June 2026 | Updated: 01:08, 9 June 2026 House prices boomed in this fine and exclusive corner of English countryside during the pandemic as homeowners left cities for a rural life during the 'race for space'. But the Cotswolds may have hit its peak with property values having fallen 12 per cent between late 2022 and the end of last year, according to estate agents Savills. The reversal in fortunes comes after prices for country houses in the region rose by nearly a fifth when Covid-19 was gripping the nation between 2020 and 2022. Dozens of high-end properties listed in the Cotswolds have had their prices cut in recent months as sellers struggle to find a buyer amid the economic uncertainty. These include a huge five-bedroom property in Wyck Rissington featuring equestrian facilities within its 15-acre grounds, which went on the market with Fisher German for £8million in September but was reduced in February by 10 per cent to £7.2million.  Another estate with a 10 per cent price reduction is a six-bedroom farmhouse and five-bedroom cottage in 191 acres of countryside in Great Rollright. This went on the market for £4.4million last October with Savills but was cut to £3.95million in May. In the village of Upper Oddington, a pretty stone-built five-bedroom house went on sale for £2.25million in February but was cut by 9 per cent to £2.05million last month.  Elsewhere a five-bedroom detached house in Tetbury went on sale for £1.2million in January then cut in March to £1.1million, having last been sold for £685,000 in 2020.  Woodstock has seen the biggest drop in interest since 2021 with a 54 per cent fall, based on data from PropCast Market Heat which analyses buyer demand.  A huge five-bedroom property in Wyck Rissington, Gloucestershire, features equestrian facilities within its 15-actre grounds. The home went on the market with Fisher German for £8million in September but was reduced in February by 10 per cent to £7.2million A six-bedroom farmhouse and cottage in 191 acres of countryside in Great Rollright went on the market for £4.4million last October with Savills but was cut to £3.95million in May In the village of Upper Oddington, a pretty stone-built five-bedroom house went on sale for £2.25million in February with Savills but was cut by 9 per cent to £2.05million in May A five-bedroom detached house in Tetbury went on sale for £1.2million in January with Hunter French then cut in March to £1.1million, having last been sold for £685,000 in 2020 Malmesbury is second with a 52 per cent drop and Shipston-on-Stour third with a 50 per cent. The rise in mortgage rates is one of the many reasons behind the fall. This has been driven by the US-Israeli war on Iran since February causing disruption to energy supplies which has increased inflation and seen borrowing costs soar. But Burford and Moreton-in-Marsh are performing best because they entice those from abroad who are often wealthy cash buyers that do not need a mortgage. Elizabeth D'Allemagne, partner at the Cotswold property specialist Butler Sherborn, told the Times that prices have been 'recalibrating' in the area and described the 2021 market as being 'firmly in the rearview mirror'. Jess Simpson, managing director of property buying agency Stoneacre Advisors, added: 'It's a perfect storm. 'We have certainly seen a significant decrease in the number of buyers looking for country houses over the last two years.  'This is primarily because they will no longer tolerate having to undertake renovation work, and there is a widespread issue with overvaluation and unrealistic pricing.' Buyers at the top end of the market in the Cotswolds are said to be prioritising architectural integrity, sympathetic restoration, privacy and connectivity. Prices in the area soared during the pandemic until the notorious mini-Budget of September 2022 which resulted in economic turmoil and a spike in mortgage rates. Falls accelerated during the middle of 2025 amid major uncertainty over the contents of November's Budget, before beginning to stabilise at the end of the year.  Price growth accelerated in the Cotswolds during the pandemic but has slipped in recent years Areas of the Cotswolds with the highest average values are in the north and west of the region The highest value markets in the Cotswolds include Burford, Stow-on-the-Wold and Kemble Prices have dropped 12 per cent since the 2022 mini-Budget, leading to net growth of 4 per cent between March 2020 and the end of 2025, according to Savills. It said international buyers in the Cotswolds accounted for just over a fifth of sales above £1.5million, which is almost double the proportion across wider regional markets and higher than the 12 per cent average recorded for the previous five years. North American buyers increased to 13 per cent in 2025, up from the 3.5 per cent long-term average. But those from London also increased in 2025, making up almost half of buyers and close to the peak of 51 per cent during the pandemic exodus from the capital.  Among the Americans to have invested in the Cotswolds in recent years are Ellen DeGeneres and Portia de Rossi who bought a 43-acre property for £15million in 2024.  They then listed the refurbished estate for sale for £22million last July - before taking it off the market six months later in January when they failed to find a buyer.   The average house price in the Cotswolds in March 2026 was £406,000, according to the latest data from the Office for National Statistics released last month. This was a slight dip from the £408,000 in March 2025. The average price for semi-detached properties in the Cotswolds stayed around the same level over the year, but the average price for flats decreased by 4.3 per cent. No comments have so far been submitted. 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