Lincoln house prices surge due to stock shortage and Londoners moving to city
07-06-2015
By Lincolnshire Echo
A shortage of homes in Lincoln and Londoners relocating here are pushing house prices higher, estate agents say.
The average property price in Lincoln rose 4 per cent in 2013-14 – jumping from £123,750 up to £128,850, according to the Office for National Statistics.
Agents say London commuters priced out of the capital are part of the reason and one says Lincoln simply does not have enough homes.
Frances Warriner director of Frankeys Estate Agents in Lincoln, said: "It's definitely about supply and demand. I do not think it's investors but I do think it's a lack of stock.
"I think we need to look at the existing stock in Lincoln and see what can be refurbished as well as the planned new builds, as there is a lack of availability at the minute."
However, new builds could change the housing market in and around the city – and put a brake on prices.
New homes in Lincoln and the surrounding villages are in the pipeline, with Welton, Nettleham, Bassingham and Saxilby all facing the prospect of hundreds of new houses being built in their area.
Elsewhere in the county, prices have also been rising.
Sleaford and North Hykeham have seen a 10 per cent increase in the average house price, while Grantham and Stamford have seen 8 per cent.
The housing market in South Holland and the Deepings has also grown by 8 per cent while Boston and Skegness rose by 6 per cent.
In Gainsborough, it has risen by 5 per cent, while Louth and Horncastle went up by 3 per cent.
The Lincolnshire average house price is £132,330 according to the Land Registry.
Tim Downing, senior partner at Lincolnshire-based estate agents Pygott and Crone, said: "Each month we are seeing approximately 30 buyers either looking to relocate from London or invest in the area across our 11 regional branches, and it's not hard to see why."
Mark Rice, managing director of Mark Rice Estate Agents in Sleaford, said: "At the moment it's a stable growing market – but prices have been going up in London so it will pick up."