By Charlotte Beugge

A new divide is developing in the property market - but this time it's not between the north and south, but between the home of the rich and the super-rich, the latest Knight Frank Prime Country House Index suggests.

In the final quarter of last year prime country house prices fell by 1.7% and the annual fall was 3.1%.

But top country homes, those which command price tags of £5 million or more rose by 0.2% in the final quarter of the year and by 1.2% for the whole year.

Adding together super-prime and prime country home prices, values are 3% higher than at their low point in June 2009. The survey said property prices in the home counties were the most resilient, down 1% on the year. In contrast, prices in the north-west were 10% down on the year.

Grainne Gilmore, head of UK residential research, comments: "Overseas buyers, who are very active in the Prime Central London market, are also interested in larger properties just outside the Capital, especially those near the best schools, supporting prices.

"Domestic buyers moving out of Prime Central London, where prices have reached record highs, are also key players in this market."

However, Knight Frank says that it's only within the M25 that prices are rising, as elsewhere the property market is dependent on the local market.

And it adds that there has been a big increase in the number of borrowers pulling out of purchases before contracts are exchanged, often because of nervousness about getting mortgage finance.