As we are now half way through 2025, it’s certain the Lincoln housing market has been more restrained than the post pandemic 24 months of summer 2020 through to July/August of 2022, and I believe that the ‘steady as she goes’ outlook will continue into the rest of 2025 and beyond.
As I always say in my Lincoln property market updates, home ownership is a medium to long-term investment, so I feel it’s always important to measure what has happened to Lincoln house prices over those medium to long terms.
Since the summer of 2005 the average Lincoln homeowner has seen their property’s value rise by an average of 43%.
This is significant as house prices are a national fascination and sub-consciously tied into the perceived health of the UK economy. Most of that 43% gain has come from the overall growth in all Lincoln property values, while some of it will have come about by modernising, extending or developing their Lincoln home.
Analysing the different types of property in Lincoln and the profit made by each type, it makes interesting reading:
- Overall Average for All Homes in Lincoln. The average price paid for homes in Lincoln in 2005 was £133,867. Now it’s 2025, and it has risen to £190,407. This is a total profit of £56,540 (which is £2,827 profit per year per home or an annual growth of 2.2%).
- Apartments in Lincoln. The average price paid for apartments in Lincoln in 2005 was £104,332. Now it’s 2025, and it has risen to £156,275. This is a total profit of £51,943 (which is £2,597 profit per year per home or an annual growth of 2.5%).
- Terraced/Town Houses in Lincoln. The average price paid for all town house/terraced houses in Lincoln in 2005 was £104,733. Now it’s 2025, and it has risen to £148,757. This is a total profit of £44,024 (which is £2,201 profit per year per home or an annual growth of 2.1%).
- Semi-Detached Homes in Lincoln. The average price paid for all semis in Lincoln in 2005 was £131,150. Now it’s 2025, and it has risen to £191,649. This is a total profit of £60,499 (which is £3,025 profit per year per home or an annual growth of 2.3%).
- Detached Homes in Lincoln. The average price paid for all detached homes in Lincoln in 2005 was £200,678. Now it’s 2025, and it has risen to £283,185. This is a total profit of £82,507 (which is £4,125 profit per year per home or an annual growth of 2.1%).
However, we can’t forget there has been 77% inflation over those 20 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we consider inflation since 2005, the true ‘spending power’ of that profit has been lower.
- Overall average for all homes in Lincoln. The total ‘real profit’ (i.e. after inflation has been deducted) for the average Lincoln home is £31,907 for the last 20 years. This equates to £1,595 ‘real’ profit per annum.
- Lincoln Apartments. The total ‘real profit’ (i.e. after inflation has been deducted) for the average Lincoln apartment is £29,313 for the last 20 years. This equates to £1,466 ‘real’ profit per annum.
- Lincoln Terraced/Town House homes. The total ‘real profit’ (i.e. after inflation has been deducted) for the average Lincoln town house/terraced home is £24,844 for the last 20 years. This equates to £1,242 ‘real’ profit per annum.
- Lincoln Semi-Detached homes. The total ‘real profit’ (i.e. after inflation has been deducted) for the average Lincoln semi-detached home is £34,142 for the last 20 years. This equates to £1,707 ‘real’ profit per annum.
- Lincoln Detached homes. The total ‘real profit’ (i.e. after inflation has been removed) for the average Lincoln detached home is £46,562 for the last 20 years. This equates to £2,328 ‘real’ profit per annum.
Therefore, the profit for an average Lincoln home over the last two decades, adjusted for inflation, stands at £1,595 per year.
I wanted to show you that despite the 2008/09 Credit Crunch property market crash, which saw Lincoln property values plummet by 16% to 19% over 18 months, Lincoln homeowners have still fared better over the long term than those renting.
Looking ahead, a common question I get asked is about the future direction of the Lincoln property market.
The main influence on maintaining house price growth in Lincoln over the medium to long term will be the construction of new homes (on the supply side) and employment and interest rates (on the demand side). Although we have yet to get the official figures for 2024, independent sources indicate that the number of new households is expected to be around 217,900. Bearing in mind the annual need is for 300,000 new UK households to meet demands – arising from factors such as increased life expectancy, immigration, and later cohabitation – it’s clear that demand will continue to exceed supply unless the government heavily builds council houses.
This can only be good news for Lincoln homeowners.
What about Lincoln landlords, though?
Even though the quantity of landlords selling up their rental portfolios has increased in the last couple of years and the number of landlords purchasing buy-to-let properties is lower than in the last couple of decades, there is still margin net growth in the size of the private rented sector each year. This is all notwithstanding landlords facing higher taxes. The fact is many Lincoln landlords continue to be keen on expanding their rental portfolios in the medium to long term.
Many of the 20 and 30 something’s of Lincoln view renting as a choice that offers flexibility and options that homeownership does not provide. This means that demand for rentals will keep rising, allowing landlords to enjoy capital appreciation and rising rents. However, Lincoln buy-to-let landlords must accept more considerate strategies to maintain profitable returns from their investments.
Until next time, take care.
If you would like a chat about where you sit in the current market, do not hesitate to give me a call on 01522 512 513 or drop me a message on social media.
To ensure ALL our clients get the absolute best experience, and a total marketing strategy as unique as their homes, we only list twenty properties per month, our July and August market appraisal slots are now available to book, we ensure that you are always a name and not just a number, with Walters.
