Wednesday, Mar 11, 2009
Savills Savaged
BBC: Savills hit by property downturn
Property firm Savills has reported a loss of £7.7m for 2008 after the sector saw an "unprecedented" downturn. The firm warned that 2009 would be another challenging year with the lack of mortgages continuing to hit sales. The loss was due to a £45.4m impairment charge related to the effects of the global financial crisis. However, Savills said that the fall in property values, coupled with the weak pound, could make UK property attractive to overseas investors.
Posted by jack c @ 10:12 AM (847 views) Add Comment
7 Comments
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1. jackas said...
Thank god for overseas investors, eh?
Phew.
Why don't we just paint a massive "for sale" sign on the white cliffs of Dover?
2. crunchy said...
The overseas investors have had there fill over the last decade and they are leaving our shores as we type.
Any still solvent overseas investor would be smart enough to know that a worthwhile return on UK property is a very long way off.
Yes, that's a deal Mr Banker too many blues still left on the table. I will take your money and run as far away as possible.
3. crunchy said...
THE GREED HAS GONE WE ARE DEALING NOW WITH FEAR!
4. will said...
'the weak pound could make UK property attractive to overseas buyers'
According to the City newsflow, foreign investors in the UK are heading for the exits as they realise Britain is bust, so only a few foreign buyers would be foolish enough to buy at this time, surely not enough to keep the wolf from the door of the estate agents.
5. crunchy said...
4. will
If that was the case why don't they put there money in the forex it would be much simpler and more liquid.
I don't think a weak pound is a good enough reason to buy at this time. Investors would still be buying at near top with the pound likley to weaken further due to QE.
I personally am not convinced that a weak pound is a good enough reason to enter the market. If the employment prospects for this country was better I might have a little more optimism.
6. Liddiard said...
Why, even if it was true, would ANYONE believe that foreign investors buying up UK property is a good idea? There was an article last week on the News Blog about agents in Wales saying how great it was that Welsh property was being bought up by Russians and people from all over the globe for 60% under the asking price! We are INSANE in the UK ! And as for "lack of mortgages" being THE problem. when will we wake up to the FACT that it is the crippling property prices that CAUSED the problems and continue to cause the problems. Even if the money was there the UK cannot afford to support and inflated property market, HOW MUCH MORE EVIDENCE DOES ANYONE NEED of this FACT. Trying to support an inflated property bubble with 125% LTV mortgages and 6 / 7x's loan to incomes and borrowing 750 billion from overseas (2007), why would ANYONE have ever thought this was a good idea, let alone see the problem now that THIS KIND OF IRRESPONSIBLE LENDING HAS STOPPED!!!
Eventually we will all wake up to the FACT that recovery means returning to sensible lending levels which requires property prices to fall 40/ 50 % .
7. Les said...
melanie, oh melanie