As we go full steam ahead into 2019, its certain that the North Lincolnshire Housing Market in 2018 was a little more restrained than 2016 and 2017 and I believe this will continue into 2019.
As we go full steam ahead into 2019, it’s certain that the North Lincolnshire housing market in 2018 was a little more restrained than 2016 and 2017 and I believe this will continue into 2019. Property ownership is a medium to long term investment so, looking at the long-term, the average North Lincolnshire homeowner, having owned their property since the Millennium, has seen its value rise by more than 182%.
This is important, as house prices are a national obsession and tied into the health of the UK economy as a whole. The preponderance of that historical gain in North Lincolnshire property values has come from the growth in property values, while some of it will have been enhanced by extending, modernising or developing their home.
Taking a look at the different property types in North Lincolnshire, and the profit made by each type, makes interesting reading..
I wanted to show you that even though we had the 2008/09 Credit Crunch property market crash where, depending on the type of property, values dropped between 15% and 20% in 18 months … North Lincolnshire homeowners over the long term are still better off than those renting.
Moving forward, the question I get asked time and again is what will happen in the future to the local property market?
Irrespective of what is happening in the World, Europe or even Central London, the biggest factor over the medium to long term to ensure that this level of house price growth is maintained in North Lincolnshire, is the building of new homes both locally and in the country as a whole. Whilst we haven’t had the 2018 stats yet, Government sources suggest this will be nearer 180,000 to 190,000, a decrease from the 2017 figure of 217,350 new households being created.
When you consider that we need to build 240,000 households to equal demand (immigration people living longer, higher divorce rates and people co-habiting later in life etc) … demand will outstrip supply and unless the Government start to spend billions building council houses .. this trend will continue for years (and decades to come).
Another factor is that whilst North Lincolnshire landlords have been hit with higher taxes to enable them to actually be a landlord most, in every national survey, still intends to increase their portfolio in the medium to long term.
The youngsters of North Lincolnshire see renting as a choice, giving them flexibility and options that being tied to a home cannot give… thus meaning demand will continue to grow and landlords will be able to enjoy increased rents and capital growth, although those very same North Lincolnshire buy to let landlords will have to work smarter in the future to continue to make decent returns (profits) from their buy to let investments.
Even with the tempering of house price inflation in 2018, most local buy to let landlords (and homeowners) are still sitting on a copious amount of growth from previous years.
* Data is taken from HM Land Register