As your local estate agent, I am often asked all sorts of questions regarding the Lincoln property market, but one of the most common questions is always ‘How will Brexit affect the value of my Lincoln property?’

As your local estate agent, I am often asked all sorts of questions regarding the Lincoln property market, but one of the most common questions is always ‘How will Brexit affect the value of my Lincoln property?’

Lincoln property values dropped slightly by -0.34% last month. However, it can be dangerous to look at property value changes in the short term. When talking to both Lincoln homeowners and buy to let landlords, I always say the best way to judge the Lincoln housing market in the short term, is to look at time scales in the 12 to 18 month range and not month by month.

The underlying strength of the Lincoln property market still remains strong, as property values in Lincoln are 2.29% higher than a year ago.

That is not to say Lincoln property values might dip slightly on the run up to Christmas and into the 2017 as prices paid for property in the Summer months work themselves through the system into the monthly figures published later in the year, as many buyers have took advantage of the uncertainty in the Lincoln property market over those Summer months when they picked up some good deals.

All I would say to the 23,715 homeowners in Lincoln is the Lincoln property market is still moving and people are just as determined as ever to get their foot on and up the Lincoln property ladder. With the announcement of a cut in interest rates, which see the country’s cheapest ever mortgage rates fall ever further, demand for property is good and it will not be long before we see a strengthening in confidence and business as usual. Furthermore, we are seeing an increase in the number of new buyers entering the market, a change from the decreasing numbers we had seen across the first half of the year, there are still eight buyers chasing every property.

On the supply side of the equation, New home building in the last 12 months is 6% higher nationally than a year ago, as the number of new properties built in the 12 months to June 2016 was 139,030. However, the devil is in the detail because for decades after World War Two the country used to build more than 300,000 new homes a year. Back in 2004, an independent report stated that between 240,000 and 250,000 homes needed to be built every year to prevent spiralling house prices and a shortage of affordable homes.

If people can’t buy, they either rent from the local authority, a housing association or a private landlord. Back in the 1950’s and 1960’s local authorities were building 150,000 to 200,000 properties a year .. last year, they only built 2,060. With funding for housing associations being contracted by Government, Housing Associations only managed to build 24,830 properties in the last year. This means demand for private rental property will continue to grow as Local Authorities or Housing Associations aren’t building anywhere near as many homes to keep up with demand.
Therefore, to the landlords of the 8,881 buy to let rental properties in Lincoln, all I can say is demand for Lincoln rental properties remains robust as it is the only sector that can meet that demand for housing, meaning rents and yields will remain strong as well (and a strong rental market is good news for homeowners as well, as that also contributes to keeping Lincoln house prices strong for owner occupiers).

The underlying lack of supply of properties being built and the continued low mortgage rate environment, means that whilst we might have a bumpy ride on the run up to Christmas (because of the points raised earlier), Brexit or No Brexit, the trend will be a slow but steady upward momentum of the Lincoln property market into the Spring and Summer of 2017.