Sellers putting their high-end country properties on the market have been urged to "accept realistic valuations" as the market for homes in rural areas shows signs of cooling.

Knight Frank said that the price of a home in the countryside fell slightly by 0.04 per cent in the last three months of 2007, with country cottages seeing the largest fall, dropping by 0.7 per cent.

While many people are still interested in escaping the hustle and bustle of city life for a more tranquil rural existence, Rupert Sweet, head of the country department at the firm, said that 2008 could signal a change in the housing market.

"I predict a two-tier market will develop in 2008 between properties that can be described as being perfect and those less so."

"With this in mind I would counsel vendors to remember that we are currently in a buyer''s market and to accept realistic valuations."

Buyers are expected to become more cautious when splashing out on a new home, with Nationwide predicting last year that house prices will remain flat in 2008.