Residential property sales in Lincolnshire are on the rise, but lack of stock is an ongoing problem which is pushing up prices, a Lincoln property director has said.
According to the latest Residential Housing Market Survey from the Royal Institution of Chartered Surveyors (RICS), a lack of stock across the East Midlands has driven up house prices and sales activity has been slow but rising.
For the second consecutive month chartered surveyors have reported a decline in new homes coming onto the market.
This lack of stock is ultimately driving up prices across the region with 36% more respondents reporting price rises over the past three months.
Tim Downing, Director of Lincoln-based Pygott & Crone said: “Sales rates have been consistently good over the last three months but lack of stock is still a problem that continues to increase values across Lincolnshire and the East Midlands.
“There’s not enough property being built in the county or the nation as a whole. It’s something that the government is trying to address.
“The Greater Lincolnshire Local Enterprise Partnership have a target of 100,000 houses in the county, which is great news, but in the short term we can see that prices are going to continue to grow as demand rises.
“The RAF and university expansions are making Lincolnshire a more attractive place to live so demand is increasing all the time, but there just isn’t the stock to deal with it at the moment.”
Further price growth is expected for the coming three months, albeit it at a slower rate, with 17% more respondents of the RICS survey expecting further price increases.
Supply shortages and the growth in sales activity, alongside a lack of new instructions, has led to a further decline in homes for sale. Anecdotal comments suggest that many respondents expect the beginning of 2017 to be quiet, reflecting the lack of fresh properties coming to market.
Simon Rubinsohn, RICS Chief Economist, said: “A key issue for the housing market is the slowdown in transaction activity since the spring which is clearly being reflected in the RICS agreed sales data as well as in the official figures.
“Although there are some signs that the numbers may begin to edge upwards in the new year, the combination of macro uncertainty, the ongoing supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest.
“This is significant not just for the housing market itself but also for the wider economy given how much of consumer spending is tied in with home purchases.”