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phead

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Like the phoenix from the ashes, or more accurately the JCB from the dirt pile , things are stirring on the local building site. These are large sites(1000+) that were mothballed some moons ago, the main sewers went down, then everyone left and took the site office with them.

Well things are back on, not quite full pelt, but I see a jcb cutting trenches and the site is obviously moving on. Hard to say if the developer has called an end to the crash, perhaps just testing the water and throwing a few up to see what happens.

Here come the rabbit hutches! :lol:

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Like the phoenix from the ashes, or more accurately the JCB from the dirt pile , things are stirring on the local building site. These are large sites(1000+) that were mothballed some moons ago, the main sewers went down, then everyone left and took the site office with them.

Well things are back on, not quite full pelt, but I see a jcb cutting trenches and the site is obviously moving on. Hard to say if the developer has called an end to the crash, perhaps just testing the water and throwing a few up to see what happens.

Here come the rabbit hutches! :lol:

I noticed something similar this morning as I drove past the Bloor Homes development on Swindon's "Front Garden" - bulldozers and box scrapers have suddenly appeared and started earthmoving on a site where little seems to have been done for months other than finish houses they'd already started

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Guest KingCharles1st

Yep- they HAVE to build- otherwise they DIE

Just think though- those shiny new homes are going to be on the market for 15-20% less than their previous site's product.

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Yep- they HAVE to build- otherwise they DIE

Just think though- those shiny new homes are going to be on the market for 15-20% less than their previous site's product.

The city has given builders more money. This has given them some capacity to carry on - presumably Gordon will claim credit for shareholders deciding to bail them out rather than let them go bust, though Govt has done nothing of merit here. Having written down the value of land the breakeven price of a new build has fallen to the point where some will make sense again where supply is hsort, and thus the economics might work - this is why you need to allow the pain to be felt, it results in a write-off and restores some of the economics, after shareholders or banks have accepted a loss. Elsewhere we see the Govt trying to avoid the pain, so the problems don't go away, just get deferred.

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I thinkn it is as much to do with the builders writing down their land than an upturn in prices. 18 months ago, they could have built the houses and for the cost of the build plus the cost of the land, they wouldn't have been able to sell them, let alone make a proft. Now they have written down the price of the land, they can build them and sell for a reduced amount them at a profit.

It's all about accounting, don't you know.

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Yep, building had to start again at some point and that point has less to do with the increase in prospects and more to do with the necessity to eventually sell some of the capital they are sitting on.

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I noticed something similar this morning as I drove past the Bloor Homes development on Swindon's "Front Garden" - bulldozers and box scrapers have suddenly appeared and started earthmoving on a site where little seems to have been done for months other than finish houses they'd already started

and three months later some rather odd things seem to be happening; both the Front Garden development and the old Castrol office on Pipers Way seem to be being shut up. The only activity on either site seems to be stick in amenity berms and putting up massive, whitewashed secure fencing around the undeveloped bits. Actual building seems to have slowed down to near-enough zero.

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