"The demographic of customers for mortgages here is quite diverse – but one thing stands out…"
North Lincolnshire is an area little known nationally but is one of the UK's most affordable housing areas, in which residents and mortgage brokers are navigating unique economic and structural challenges. Despite national trends of rising interest rates and housing pressures, the local sentiment in towns like Gainsborough and Scunthorpe remains resilient, buffered by lower-than-average house prices and a strong sense of community adaptability.
Data from ONS found that the average house price in North Lincolnshire in November 2024 was £186,000, while across Yorkshire and The Humber, the average price 2024 was £218,000.
Glenn Peniston (pictured), of PFS, a mortgage broker with 25 years of experience in North Lincolnshire, noted the area's relative affordability.
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“The demographic of customers for mortgages here is quite diverse, but one thing that stands out is the affordability of houses compared to other regions,” he told Mortgage Introducer. This affordability has allowed residents to withstand economic fluctuations better than many other parts of the UK.
"I was really surprised when, a few years back, rates went up significantly. I thought we'd see a wave of repossessions, but people here are resilient. They've adjusted well to the new rates."
Scunthorpe's housing market features a significant number of post-war prefab homes, built from concrete sections and reinforced steel, now facing ageing issues that complicate mortgage approvals.
"They were only built to last so long, and the steel has now rusted, making most lenders hesitant." Peniston said. "Anyone selling one has a limited market unless they're a cash buyer or can find one of the few lenders like Halifax willing to lend based on surveyor comments. It's not a major challenge day-to-day – but it does limit the mortgage options available, affecting how we advise our clients."
And, as North Lincolnshire attracts new residents due to its affordable housing, the local infrastructure struggles to keep pace. The recent surge in housing developments has not been matched with adequate community planning, leading to potential issues in schooling and healthcare services.
"When they are giving planning permission for the thousands of houses needed they also need to consider where these people are going to school and hospital," Peniston said, highlighting the need for a balanced approach to development.
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North Lincolnshire's housing market exemplifies how areas with lower house prices can offer a cushion against broader economic pressures, making them attractive to both new and existing residents. However, unique local challenges, such as the issues with prefab homes in Scunthorpe and pressures on infrastructure, remind stakeholders of the need for careful planning and community engagement. As the area continues to evolve, maintaining this balance will be crucial for sustaining its growth and resilience.
Peniston said that while he may not make as much as a broker in London for the same amount of work, the local market remains buoyant. “Last year I was 20% up on what I did the year before.”
And, when considering how mortgage rate increases affect locals, there is a definite positive stance that comes from being in an area with lower house prices “whilst the same issues are affecting people, they are still managing to maintain moving if they want to and changing things if they want to.”
