Will the Lincoln Property Market Continue to Boom?

As 1 in 6 Lincoln homes are selling within a fortnight of coming to market.

One of the most astounding things that has happened in the last 12 months was something that did not happen. Even after the country saw the deepest recession since the Great Freeze of 1709 with GDP dropping 28% in one quarter, one would have expected a large fall in Lincoln house prices would follow. Yet…

Lincoln house prices are 3.9% higher than 12 months ago.

Even though buying and selling Lincoln property was put on ice for the first time in the history of the Lincoln property market last spring due to the Covid 19 outbreak, as the Lincoln property market wobbled on the edge of deep recession, it stepped back in early summer and now it is rocketing upwards as…

15.8% of Lincoln homes are selling within a fortnight of coming to market.

Some commentators have suggested the end of the Stamp Duty holiday together with the ending of the furlough scheme on the 30th September 2021 could be the catalyst for a drop in house prices. Even the Government’s own regulator of finances expects UK house prices to fall around a couple of percentage points in 2022 whilst some others have predicted around a 5% drop as unemployment levels increase post furlough.

However, other property market forecasters believe that property values in 2022 won’t drop against the background of robust British economic recovery in Q3 and Q4 of 2021.

What do I think will happen to the Lincoln property market in the next 12 months?

On the positive side, what I do know is the Stamp Duty holiday enabled Lincoln homebuyers to spend those tax savings on the price paid for their Lincoln home and that certainly accounts for some of the uplift in house prices mentioned above.

Also, the historically low interest rates that have supported Lincoln homebuyers’ affordability for the last 13 years since the Credit Crunch has continued. Secondly, with people spending many months working from home, this has seemed to have polarised people’s inclination to make lifestyle changes. Finally, the Government has recently introduced 5% deposit mortgages for first-time buyers. All these factors will fuel demand and hence may cause house prices to rise.

On a more cautious note, I do not believe these very sturdy Lincoln house value rises of the past year will persist at these levels for the next 12 months. With buyers having to use many thousands of pounds on Stamp Duty, the price they pay for their Lincoln home will be curtailed, meaning property values by definition will ease.

The simple fact is the British economy has yet to feel the full effect of its largest recession since 1709, and we must remain considerate about the long-term effects of the economy (and unemployment levels) on the property market.

These are interesting times for the Lincoln property market. If the price you want to achieve for your Lincoln home is the most important thing, now as opposed to 2022 might be a good time to consider placing your property on the market.

Don’t forget, you can still put your Lincoln property on the market, find a buyer and then go and see what is available to buy. Many buyers will wait for you to find a property, yet if they can’t/won’t – you won’t be made homeless. English property law means you can still come away from the sale and you won’t be forced to sell. If you would like to know a bit more about that or any aspect of buying or selling property in Lincoln, drop me a message or call me.

Blogs

1 in 7.1 Lincoln Homeowners Cut Their Asking Price Since 1st Jan 2025 21st April News

1 in 7.1 Lincoln Homeowners Cut Their Asking Price Since 1st Jan 2025

As Lincoln’s property market shifts and grows, sellers who’ve been on the market a while often face a tricky question: when to tweak the asking price—and by how much—to spark new interest. With the number of homes for sale in Lincoln’s LN1 to LN6 postcodes jumping from 1,595 in March…

Read More
Lincoln Q1 2025 Property Market Report 14th April News Sales

Lincoln Q1 2025 Property Market Report

Understanding what is really going on in the Lincoln property market is key to cutting through the noise and seeing the true picture­–both locally and nationally. Despite the near constant doom and gloom headlines predicting a housing crash since September 2022, the statistics tell a very different story. The British…

Read More
The £10.94m Lincoln Bank of Mum and Dad in 2025: A Blessing or a Barrier? 9th April News

The £10.94m Lincoln Bank of Mum and Dad in 2025: A Blessing or a Barrier?

In today’s Lincoln property market, the Bank of Mum and Dad remains a powerful force — and it’s only grown more influential. For many first-time buyers in Lincoln, parental help is not just a boost, it’s often the key to the front door. But is this a sign of generosity?…

Read More