Country home values are growing in value at the slowest rate in two years as uncertainty in financial markets threatens to bring a bleak bonus season for the City. Financial Times.

Prices for manors, farmhouses and cottages rose an average of 1.3% in the third quarter this year, according to figures from Knight Frank. The annualised growth rate fell from 10.4% the previous quarter to 9.4%.

City commuters have driven demand for rural hideaways in the home counties, the areas that have seen some of the strongest price growth in the past two years.

But Liam Bailey, head of residential research at Knight Frank, said the market for country houses between £1m and £3m, heavily driven by bonus expectations, had “hit the buffers” in recent weeks.

Demand usually picked up quickly from October as buyers tried to pre-empt the busiest year-end period when bonuses were paid, but “this time it’s just not happening,” he said.

Price growth remained strong only in the West Country.