Friday, Apr 25, 2008
But Gordon said there would be 3 million new homes
Times: Persimmon stops new site building as sales fall
Shares across the housing sector slumped yesterday after Persimmon revealed that it would stop building homes on new sites until mortgage conditions improved, while speculation grew that Barratt may be forced to raise capital through a rights issue. Persimmon, which is Britain's biggest housebuilder, said today that sales in the first four months of the year had fallen by 24 per cent.
Posted by uncle chris @ 08:15 AM (356 views) Add Comment
9 Comments
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1. planning4acrash said...
But Gordy Boy relied on the 'enginuity of the markets' and raising of private capital - yet didn't trust the market so manipulates inflation figures, thus relaxing monetary policy, then wonders why we have a boom and crash!
2. japanese uncle said...
Father, forgive him, because he doesn't know what he is doing.
3. planning4acrash said...
Oh yes he does! You wait for the gold plated 'salary' pension from j p morgan, as he joins Treacherous Tony (got a ring to it!) in the Bahamas! They all know exactly what they r doing! They are evil thieves.
4. sosoon said...
Your typical Persimmon house is not built and then sold; it is sold and then build. That’s why you can choose your kitchen and fittings. As demand weakens site slowdowns are normal, but can only go so far before construction activity essentially stop. At this point there is no requirement for new sites to start.
5. C'mon Correction said...
Perhaps those 3 million homes won't be needed after all. We're sure to see a net out-flow of people in the UK now our economy is being seen in it's real light.
6. p. doff said...
I have a friend who is downsizing and has just put down a deposit on a newbuild due for completion in October. He was about to sign a contract until I explained the pitfalls. He hasn't sold his current house despite 5 months marketing (not surprised with the silly price the agent suggested) and I could see him downsizing to a smaller house which cost as much/more than the eventual sale price of the larger one.
This guy and his wife are not stupid, they both have a degree, but they were still under the impression that you
always make money buying off plan, and that the value of their existing house is 20% more than they paid for it 16 months ago.
Do people not read the papers? does denial rule ok? If supposedly intelligent people think like this then gawd help the rest.
I think this clearly demonstrates the reasons for the inertia in the housing market.
7. ontheotherhand said...
Hang on a minute. Weren't we all told that the reason house prices were going up was that there was not enough housing... living on an island...low unemployment... property never goes down... yawn. Surely if that is true then this mortgage thing is only a blip and they should carry on building for the pent up surge in demand that will appear in 6 months. Perhaps the government will step in and force them to continue building since we live on an island.. shortage of housing...
8. crash bandicoot said...
If they don't start building pretty soon their shares will fall even further. How does a house builder generate value by NOT building (and selling) houses?
9. who stole my pension? said...
If you buy off plan and the builder goes bust before finishing you will loose your deposit!! Seems a bit risky better to wait untill the house is finished before buying.