Landlords may consider investing in rural property after it was announced that the cost of prime country houses in the UK is increasing.

Head of rural property research at Knight Frank Andrew Shirley said that a recovery in house prices was seen in London in spring 2009.

This has now spread across the country into different regions and prices rose by 2.3 per cent in the final quarter of last year.

"Property prices in the Home Counties have shown particular resilience, ending the year 1.4 per cent higher,"Mr Shirley added.

In the organisation's country offices, there was a 50 per cent rise in potential buyers and a 28 per cent increase of sales.

But there was one-third less property available - so the balance of supply and demand was unequal.

Head of Knight Frank's country department Rupert Sweeting said: "The question everybody is now asking is how long the recovery can continue and will prices fall again in 2010."

Mr Sweeting claimed that the tax on bankers' bonuses may affect prime property prices.

In December the chancellor announced that a tax of 50 per cent would be made on any banker's bonus above £25,000.

Written by Sarah FieldADNFCR-2002-ID-19538625-ADNFCR

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