Tuesday, Feb 13, 2007
Supply Outstripping Demand?
FT: Average Price of a New Flat Down 0.9%
Article from FT last month. Important data that may have been missed?
Posted by crashhorizon @ 10:37 AM (151 views) Add Comment
6 Comments
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1. Sam said...
I find this is very common around west london. houses are creeping up in value but flats seem to struggle. which would go with the supply and demand theory as there a many new flats around the area.
I think there's also a massive increase in the number builders putting flats up rather than houses as these are the types fo properties that BTL'ers prefer. you know, nice easy sells.
some friends have noted that they plan to buy a flat now, save money, then buy a house when they settle down. renting out the flat as a pension. not sure how it'll pan out for them.
2. bidin'matime said...
Blimey. Even allowing for distortions in the figures, this is strange. We tend to assume that HPI stats reflect BTL frenzy, but if typical BTL purchases are not increasing much, then what the hell is??!
3. dohousescrashinthewoods said...
"buy-to-let investors, who account for more than half the units in any typical scheme." - I had heard rumours but this seems like confirmation.
Presumably, then, it's the top-end and family homes that are swelling.
If BTL is mostly in flats, then is it truly just money supply driving demand against a fairly unchanged stock of basic houses?
4. bingo said...
take a look at the Sunday Times property section every week, there are adverts for new developments specifically targeted at the btl brigade. These tend to consist of brightly colored flats close to city centers, with trendy kitchens and bathrooms. Cheap as chips (to quote someone who is permanantly tangoed), but can you imagine what they will look like in 7-8 years, when the paint is peeling, the kitchens and bathrooms are outdated, I guess you could say they are the equivalent to the old high rises of the 60's and early 70's. I imagine they all have service charges too (now that I start to think about it) the elevator charges for these things are astronomical, do the people on the ground floor have to pay the same service fees?
5. enuii said...
Got more of those abominations going up in my neck of the woods than you can 'shake a stick' at, last count there were 2000 empty and going up exclusive, executive, duplex, loft etc etc apartments (sorry flats) in the little town of Warrington, so I fully expect any buyers to be on the biggest monetary looser in their life over the next few years.
Typical prices start at £168K for a small apartment with a £2K a year service charge for starters, hardly a good buy when you can buy a terraced or semi-detached house for the same money in the same area!
6. tyrellcorporation said...
Agreed, these Judge Dread style city blocks are a gross eyesore on any city skyline and grow (certainly in Exeter's case) particulalry well in delighful areas like old railway sidings and piss-ridden old car-parks. Quite why idiots are queueing up to buy these depressing, disposable bedsits is beyond me.