Kate Faulkner

By Kate Faulkner katefaulkner

I must admit many press releases I receive on property tend to be ‘sales pitches’ which I tend to ignore, but I thought this story was great news for Lincolnshire and shows a potential way forward to help us solve the shortage of homes, especially in the affordable and social homes sector.

The news is that Westleigh Partnership Homes is undertaking its very first Community Land Trust (CLT) schemes that will result in 24 new affordable homes for Lincolnshire. These homes will be built across two sites, one in Pinchbeck and the other in Wilsford.

Better still, the homes aren’t for ‘anyone’ — they are affordable homes which are for local families who may well be able to move in early next year. And these aren’t ‘for sale’ — these properties will be rented to the local people that need them and will remain in the hands of the Housing Association.

Why is this such a good story? There are lots of reasons, but one of the main problems in creating new housing, especially in rural areas, is local homeowners who, understandably, when aware someone wants to build on green land opposite them would instantly object.

The thing I like about this project is 24 homes doesn’t sound anyway near as ‘scary’ as the headlines we often see in the newspaper which might say “2,000 new homes coming to Lincoln”, even though these are typically built at 100 per year over a 20-year period. Although we wouldn’t necessarily like it if they were built overlooking our gardens and no doubt there was some opposition locally, 24 homes still feels manageable, especially when split over two sites of 10 and 14 properties.

The second thing I like about this scheme is it’s been developed with the help of different funding, so isn’t costing the taxpayer a fortune either. According to Wilsford CLT. they bought their site on School Lane from Lincolnshire County Council. The scheme has been funded by a combination of Homes and Community Agent-led grant, a grant from North Kesteven District Council, private borrowing by the Housing Association and investment by Lincolnshire Rural. For the other site on Flaxmill Lane, the Parish Council “accepted a reduced land value to keep the project viable” for its residents.

The final bit of good news is the “homes will be let at affordable rent to families with a local connection”. And these new homes will help deliver work to the area and as the village population grows – by a little, not a lot – there are hopes one of the villages may into the future be able to support a village shop too off the back of the development.

As long as this type of development is handled well, those affected are consulted first, not last, this really is a great way communities, local organisations and private funding can work together. This means the community can help to find land they agree for homes to be built on and in turn this can make a massive difference to local people who would otherwise be in the private rental sector, when really needing a permanent affordable home.

Kate Faulkner is Managing Director of propertychecklists.co.uk. The site gives free advice to consumers on how to measure their local market and an understanding of how to buy their first home or trade up. Kate’s background stretches from self-build to part exchange to buy to let and renovation. She is the author of the Which? property books and regularly appears on local and national media.

By Kate Faulkner katefaulkner

Property market picking up pace in Lincoln – but still good value for money! I have to say I’m getting a little tired now of the dominance of London property prices in the headlines and indeed from a housing policy perspective too.

This is especially because I don’t see much point in comparing London to the rest of the UK. To me that’s a real ‘apples versus pears’ comparison. London is an extremely successful international city which is seen as a ‘safe haven’ by global investors and those that live there from a property perspective.

The real comparison for London should be the likes of what’s happening in Paris, New York and Berlin. Interestingly, looking at New York property headlines, they don’t really differ that much to London’s. They too are suffering from the likes of high demand and properties for sale going to sealed bids following 20+ viewings. Even in Berlin where typically people have preferred to rent, there are new headlines suggesting they are starting to suffer from the same issues with a recent Guardian report claiming more people are looking to buy, causing a potential ‘property boom’.

What’s far more interesting to you and me though is what’s happening in our local area and how that compares to other regions. And on this basis, Lincolnshire is doing pretty well at the moment!

Latest data from the Land Registry suggests Lincolnshire’s ‘average’ property price is nearly £129,000 – just above the zero stamp duty limit – while neighbouring Nottinghamshire is just under this limit at £124,500. Lincolnshire prices (on average) are rising fast year on year – by around 7% versus Nottinghamshire’s 5%.

However, this doesn’t mean prices in either region are ‘unaffordable’. In fact, the current £129,000 average price is actually still well below Lincolnshire’s peak of £146,000 reached in November in 2007. Considering property prices normally grow in excess of inflation, which is 3% on average per year, this year’s average should be over £174,000 – just to keep up with inflation.

So with property prices at £129,000, this level could be considered as exceptional value for money at the moment, and the good news is prices have ‘turned the corner’ and are rising year on year, potentially making it a good time to buy.

Has this been driven by Help to Buy? The ‘red herring’ that Help to Buy has caused the property prices is now becoming obvious, despite previous commentators and politicians claims. In Lincolnshire, despite great year on year growth, we still have one of the lowest take up rates of Help to Buy versus the rest of the East Midlands:-

• 825 Help to Buy sales in Nottingham and Nottinghamshire;
• 825 in Leicester, Leicestershire and Rutland;
• 749 in Northamptonshire;
• 638 in Derby and Derbyshire

In Lincolnshire, only 460 home buyers have taken advantage of the scheme. And in London where Help to Buy has been accused of not just increasing prices, but creating a ‘bubble’ it has one of the lowest take up rates! In Hackney for example where prices are up 17% year on year, there have been less than five people take advantage of the government initiative. Hardly enough to cause the destruction many have been warning about.

So it’s a good time to be looking at property at the moment, no bubble in sight, instead just some steady price growth which is pretty healthy for the market, especially considering prices are historically good value for money in the region.

Kate Faulkner is Managing Director of propertychecklists.co.uk. The site gives free advice to consumers on how to measure their local market and an understanding of how to buy their first home or trade up. Kate’s background stretches from self-build to part exchange to buy to let and renovation. She is the author of the Which? property books and regularly appears on local and national media.