April 2, 2014 3.09 pm This story is over 124 months old

Lincoln house prices increase seven times more than wages

Home truths: House prices in Lincoln have increased seven times more than wages in the past decade, according to a new housing report.
Photo: CoLC

House prices in Lincoln increased by 70% between 2002 and 2012 — seven times more than the increase in income, according to a report by the Nation Housing Federation.

The Home Truths 2013/14: East Midlands report compares average housing prices with incomes against a national average ratio.

Average income in Lincoln increased by only 10%, the lowest rate in the whole of the East Midlands.

In addition, private rents in the city rose by 24% in the past decade, which is in line with the average wage rise for the region.

The federation also projects the average house price in the East Midlands is expected to rise by more than 25% by 2020.

The average median income in Lincoln for 2012 was £17,566, compared to the Lincolnshire average of £18,933. The lowest median income in the county was Boston with £16,032.

Average house prices in Lincoln rose to £130,438 in 2012, while the lowest average house price in the county came from North Kesteven, where prices were £165,018.

Kate Warburton, East Midlands external affairs manager for the National Housing Federation, said: “The East Midlands has fallen behind in terms of house building and rising house prices and private rents are testament to that fact.

“As demand outstrips supply, the region’s housing crisis is not only making life extremely difficult for people living and working in the region, but it is also affects employers and businesses and risks holding back economic growth.

“Every new home built here brings over £69,000 into the East Midlands, creating 1.6 jobs directly and in the wider regional economy.

“We need our Local Enterprise Partnerships to work with local councils, housing associations and others, to take a strategic lead on getting more homes built at the right price in the right places. This will help to revitalise our communities and create jobs,” she added.