Knight Frank’s Prime Country House Index reports growth of 11.2% in prime country house prices during 2006 – the highest rate of growth since June 2004.

Owners of country cottages, farmhouses and manor houses respectively, saw price growth equivalent to £3,591, £9,580 and £26,358 each month in the year to December 2006.

Owners of the most prestigious houses have seen their value rise by £866 a day, every day for a year. Price growth has been led by the larger manor houses and properties priced at above £3 million, which rose 17% last year.

Knight Frank’s head of residential research, Liam Bailey, comments: “The strongest performing sector was the manor house category – larger houses with land – which saw upwards of 11.9% growth over the year.

With the City economy performing well and the prime Central London housing market going from strength to strength, London buyers have taken advantage of continued high price growth and have taken their money out to the country.”

Country cottage prices were 10.4% higher in December compared to 12 months earlier, with the average example increasing in price to £530,000 over the 12 month period (an increase of £43,000). The typical cottage has up to one acre of land, is detached, and has three bedrooms.