The Lincolnshire property market has gained strength as prices rise due to a lack of new instructions to sell, according to a Lincoln-based property agent.
This is a trend across the East Midlands according to the latest RICS UK Residential Market Survey, which shows that a drop of available properties on the market is supporting price growth.
The region saw 11% more respondents reporting a decline in new instructions to sell, rather than a rise – a trend echoed across the majority of UK regions apart from the South East and West and East Anglia.
As Lincolnshire continues to develop and change, the county is receiving more and more outside interest.
Tim Downing, Director of Lincoln-based Pygott & Crone, said: “We are experiencing a strong property market in Lincolnshire and the East Midlands, with our offices selling in excess of 200 house per month.
“The expanding RAF and university and the attraction of Lincolnshire as a very affordable county as well as the improving transport links such as the announcement of main line services direct to London, makes Lincolnshire a very attractive region to live, work and invest.
“This demand, coupled with a shortage of housing stock, will only drive up prices in the short to medium term.”
According to the RICS survey, the fall in new properties coming to market is one factor holding back demand with 14% more surveyors reporting a decline rather than a rise in new buyer enquiries this month. Anecdotal evidence suggests that the tight supply conditions continue to be a very dominant feature of the market.
Looking ahead, 20% more chartered surveyors expect transaction levels to increase over the coming three months, rather than fall. This positive sentiment is also echoed with price growth as 11% more respondents foresee a rise over the coming months rather than a fall.
In the lettings market, tenant demand picked up firmly in the three months to October with 32% more chartered surveyors reporting a rise in enquiries, rather than a fall. Demand continues to outpace new supply in a trend that dates back almost two years.
This continued demand versus supply battle continues to drive rent expectations higher with 42% more respondents expecting rents to increase in the coming three months. This expected rise in rents is also expected on the twelve month and five year horizon – unless something drastically changes to bring more rental properties onto the market.
Simon Rubinsohn, RICS Chief Economist, said: “The dire shortage of available housing across the region is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.
“We are only weeks away from the Autumn Statement, and it will be interesting to see what measures – if any – the Chancellor will put in place to increase housing supply and create a more affordable market.”