Sunday, Feb 24, 2008
Britain’s housing market again described as a “pack of cards” set to tumble because of “reckless lending” and “overbuilding” of flats
Times: Top builders Persimmon and Barratt set to reveal market woes
TWO of Britain’s biggest housebuilders are expected to trigger fresh worries over the state of the housing market this week by confirming that reservation levels at their developments have plunged by more than 20% compared with a year ago. Persimmon and Barratt, which report financial results this week, are tipped by City analysts to caution that reservation levels have dropped by 20%-30% as buyers struggle to secure attractive home loans following a clamp-down on riskier mortgages. Barratt is offering first-time buyers the opportunity to buy 100% of a property for 75% of the purchase price through an interest-free loan under its Dreamstart scheme.
Posted by jack c @ 08:59 AM (886 views) Add Comment
10 Comments
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1. jack c said...
"Barratt is offering first-time buyers the opportunity to buy 100% of a property for 75% of the purchase price through an interest-free loan under its Dreamstart scheme"
This suggests that the property is 25% overvalued at outset !
2. japanese uncle said...
Dreamstart scheme should better be renamed as Nightmarestart scheme, to say the least.
25% of the property remains belonging to someone else, means bathroom may not be yours to the last. None short of nightmare!
Each time you use bathroom, you need to ask Barrat for permission.
3. paul said...
"Each time you use bathroom, you need to ask Barrat for permission."
"Please sir, can I take a dump?"
Hehe. That's funny.
4. happyrenter said...
"private-housing construction starts plunged by 40%"
strong demand? No
confidence buyers will return by the time new starts are completed? No
shortage of houses? No
shortage of building workers (augmented fromPoland, Spain or elsewhere) ? No
Builder vote on the state of the market with their 'starts'....
5. Wilee said...
@Jack: ...as opposed to having the opportunity to buy all of it for ~85% of the official price paid like in Panorama
@Paul: ...soon to be joined by... "you'll need to ask Persimmon to use the bathroom"
6. quiet guy said...
"Both builders are expected to say they are optimistic that conditions will improve in the second half of the year."
Well they *HAVE* to say that because enything else would be an admission that their proprties are toxic assets that will lose a heap of cash when the market corrects.
7. afrobaggie said...
Quiet Guy said... "Well they *HAVE* to say that because enything else would be an admission that their proprties are toxic assets that will lose a heap of cash when the market corrects."
Isn't that is what is known as doing a 'Ratners'?
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