BTL investors discover Lincoln

Published 04th Sep 2007

Savvy investors are discovering that there is much more to Lincoln than its famous Cathedral…

When it comes to seeking out cities for buy-to-let investors to find property in, there may be a tendency for some to think of the big provincial cities where large-scale renewal has city living and mushrooming developments of flats at its heart.

While indeed the likes of Manchester and Leeds are booming, there are popular areas and genuine opportunities to be had in places that may slip under some people's radar.

Lincoln could be one such place. Located in the flat fenlands midway between the sea and large centres of population such as Nottingham and Sheffield, Lincoln might be seen as something of a backwater, a small city of 84,000 people, (according to Lincoln City Council figures) famous only for its large cathedral.

Lucrative hotspots
Yet there are lucrative spots for investors here. Linda McGuirk, a spokesperson from Lincolnshire estate agents Burton & Co pointed said locations near the cathedral can fetch up to £500,000 for a six-bedroom house and £130,000 for a two-bedroom terraced property.

She added that the presence of the University of Lincoln has a particularly significant impact, with properties in the west end of the city being valued at around £130,000 to £150,000 due to their proximity to the university (The main campus is on the waterfront by Brayford Pool).

Ms McGuirk added: "These properties are popular because of the profit that can be made to investors when renting them out. In particular these properties are so popular because of the location and proximity to the university."

This is an aspect of investment in Lincoln that may well develop further. The city, despite being an ancient one, did not have a university at all before the 1990s, when the then University of Lincolnshire and Humberside arrived.
A name change, reflecting the geographical shift from its roots in Hull as the University of Humberside, was not the only new development, with the university boasting that the Brayford campus was the first city centre campus constructed in 25 years when it was opened in 1996.

Student demand will rise
Thus the Lincoln student scene has grown up from nothing in a short few years, centred on a rapidly changing institution. At present, the university states it has 8,326 undergraduate students on its three campuses. But should it undergo future expansion, this will create further demand for rental property in Lincoln.

House prices are low in Lincoln, Ms McGurk stated, with some terraces available for just £110,000, but these are not likely to be snapped up be locals, she says, because wages are generally low in Lincoln.

So while recent research by the Halifax showed the average university town has a premium on prices, this effect has not pushed Lincoln prices out of reach for many investors. Thus if there is further expansion in student numbers, there may well be many more buy-to-let opportunities to be had at bargain prices.

Source: ' Assetz '

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