Lincolnshire

Buyers at all-time high in Lincolnshire housing market

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Buyer registration in the Lincolnshire housing market is at an all-time high, according to a Lincoln-based estate agents.

Home buyer demand in the East Midlands is beginning to pick up for the first time since March, with 19% more chartered surveyors reporting an increase in buyer enquiries.

Chris Laughton, Associate Partner and Valuer for Lincoln-based Mundys, said: “We have seen an increase in buyer registration with an all-time high of over 1,500 buyers registered on our system who are looking for a home in Lincolnshire.

“We feel with the recent investment into the Lincolnshire economy, all-time low mortgage rates and competitive house prices across the county, this has assisted in increasing buyer interest and given this we would expect the remainder of 2016 to be a great time to sell your home.”

The September 2016 RICS data shows a significant turnaround in new buyer enquiries compared to May, when a net balance of 37% of respondents reported a drop, with a modest pick up each month.

The latest results show considerable variation across the UK with some regions seeing a more stable trend as opposed to a solid recovery.

As home buyer demand rose across the East Midlands in August, so did the number of new instructions being received by agents in the region with 5% more respondents reporting a rise.

This is unlike some parts of the UK where agents experienced a drop in new properties coming to the market.

Despite new instructions returning to positive territory this month, the average level of stock on East Midlands’ estate agents books remains close to historic lows at just over 58 properties.

The sustained low in housing supply alongside the increase in buyer demand is expected to push up prices somewhat in the near term and by rather more in longer term.

The net balance shows prices rose in September, with 40% more chartered surveyors reporting an increase in prices than a fall.

Over the next three months, East Midlands’ house prices are predicted to rise further with 18% more respondents expecting to see an increase. This is the strongest reading since February and compares with +15% in August.

The lack of choice for would-be purchasers in the region also appears to be restricting overall sales activity for the time being. Agreed sales in the East Midlands remained in negative territory after declining sharply between May and July.

Looking ahead, respondents’ optimism towards the sales outlook improved, with growth expected across all parts of the East Midlands over the next three months. Further out, over the next 12 months, contributors are projecting sales to pick-up firmly in all areas.

Simon Rubinsohn, RICS Chief Economist, said: “The market does now appear to be settling down following the significant headwinds encountered through the spring and summer.

“Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market. Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover.”