Prime real estate in Lincolnshire is being snapped up as buy-to-let investments by London based first-time buyers as they are priced out of the capital.
With the average house price in London reaching an eye-watering £514,000, people seeking property are being drawn towards Lincolnshire where the average cost of a home is £384,000 cheaper than in London and for just £130,000 in Lincolnshire buyers can expect a two-bed semi with a garage and a good-sized garden.
With these figures buyers are quite rightly tempted away from the capital to counties like Lincolnshire as they are able to get much more square footage for their money. Even though the sacrifice is that these buyers won’t be living in the property as they continue to rent themselves in the capital it makes financial sense. Many first-time buyers want to get on the property ladder but aren’t prepared to give up their London life and jobs and this is the compromise.
It’s not only Lincolnshire’s house prices that are enticing first-time buyer’s it’s the county’s strong transport links with London’s Kings Cross Station - just over an hour’s journey from towns such as Grantham, making it perfect for both investors and commuters.
Tim Downing, senior partner at Lincolnshire based Pygott & Crone, said: “We are seeing more and more first-time buyers from London buying here as a solution to not being able to get on the ladder in the capital. Buying in beautiful Lincolnshire gives them that option and they can continue to live in London while renting out their first property here.
“Most are either unable or unwilling to spend large amounts on small spaces in London and are instead turning to Lincolnshire for a number of reasons – not just value for money. Transport links, space and the fact the East Midlands economy is extremely strong at the moment means there are more jobs in the area and therefore more people moving into the area needing rental properties.
“And it’s not just first-time buyers either, we are seeing many second-home buyers also making the most of Lincolnshire’s house prices, all because the capitals prices are overheating.”
Lincolnshire and East Coast Mainline trains have announced that by 2016 rail services to London will increase from two to six trains every day so with more regular connections to the capital, Lincolnshire towns and villages are ripe to become commuter hotspots.
As well as first-time and second-home owners, London-based property investors are also looking for buy-to-let opportunities drawn in by promising rental yields of around six per cent, and a five per cent growth in property values across the county in the past year.
Tim added: “Each month we are seeing approximately 30 buyers either looking to relocate from London or invest in the area across our 11 regional branches, and it’s not hard to see why.
“Along with the financial benefits, it’s a great place for people to settle down. The county boasts scenic vistas around every corner, we have outstanding schools such as the Kings Grammar School in Grantham where Sir Isaac Newton was educated which is helping to support a growing and thriving economy.”
Ofsted recently announced that 85 per cent of schools in Lincolnshire are rated good or outstanding, compared to 80 per cent across the East Midlands and 81 per cent nationwide.
Furthermore, figures collected by Pygott & Crone show the two most popular destinations for those relocating to the county are the historic city of Lincoln and the town of Grimsby in North Lincolnshire.
Grimsby, the UK’s busiest port, has benefitted from significant investment within the renewable energy sector and the town is set to become a leading centre for off-shore windfarms in the UK. Already welcoming a new wave of engineers and renewable experts moving there to work in the sector, the town is also proving popular because of its links to Europe from the nearby Humberside airport just 15 miles away.
Lincoln itself is steeped in history and is currently undergoing something of a cultural renaissance. Boasting a new visitor centre housing an original copy of the Magna Carta at Lincoln Castle following a £22 million investment, Lincoln’s tourism is set to benefit from a further £16 million redevelopment at the neighbouring cathedral.
This, combined with the growth of the well regarded university and more engineering-based investment from the likes of Siemens, has made it a popular place for people to relocate to.
Natasha Erwich is one of those who has relocated from West Sussex to a village just on the outskirts of Lincoln.
She said: “I sold my three bed bungalow in West Sussex for £440,000 and was able to purchase a seven bed house in the village of Snitterby for £430,000.
“I have young children and I could never have afforded a house of this size and in such great condition down south.
“I now work from home as well, so I needed the extra space for an office and its gives me the time to walk the children to and from school.”
As the second biggest county and stretching over 2,500 square miles, Lincolnshire has plenty of space for new developments, as well as offering people like Natasha high-quality family homes.
The county has seen a growth in landmark residential developments throughout the last few years including the £40m development of St John’s Village located in Bracebridge Heath just outside Lincoln. The renovated Grade II listed former hospital features 106 new homes and apartments, of which 67 are new builds, and offers investors an average rental return of around six per cent.
Named the Residential Scheme of the Year across the East Midlands the new development also offer buyers a chance to buy through the PartXPLus scheme being offered exclusively through Pygott & Crone. People looking to move into the award-winning development can have their own homes valued in 72 hours, followed by an offer made within 48 hours, aiming to break to delay and frustration often associated with having to sell a house before moving on. An ideal offer for buyers as there is no mortgage involved, no fees charges and expert advice at your fingertips.
Tim continued: “It’s a really exciting time to be working in property in Lincolnshire. I’ve seen the market change dramatically over the last 20 years and we’ve definitely seen an increase in buyers and investors coming to the county from the capital or the south of the country.
“First-time buyers needn’t be priced out of the market just because they’re choosing to live and work in London. For just £15,000 deposit first-time buyers can invest in Lincolnshire’ growing property market, securing their place on the ladder for the future.”