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New Build Properties Have Fallen 50% Since Peak

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By Paul Farrow

Published: 3:36PM BST 10 Jul 2009

We were told that house prices started to fall officially in late 2007, but the reality for people who bought new builds is altogether different. Their house price crash began as long ago as early 2006.

A property based in East Anglia, which was valued at £246,995 in April 2006 would be worth around £225,000 today, a fall of 9pc, according to the Nationwide House Price Index calculator on its website. But the house price index does not differentiate between a new-build property or one that is, say, 150 years old. In reality that property could be worth just £120,000.

say reality because that is the case with flat number 7 Henry Laver Court, Colchester, which was bought for a princely sum of £246,995 in the Spring of 2006 only to be sold for £120,000 less than that three years later. It is not the only flat in the three-year old development that has fallen in value by as good as 50pc.

The Sunday Telegraph Money section first revealed the plight of new builds two years ago. We told the story of a Barratt development in Britain's oldest recorded town, Colchester, and how many properties had been repossessed and were under the hammer at knock-down prices. The flats at Henry Laver Court which sold, with incentives, for between £224,995 and £249,995, had reserve prices at the auction of around £140,000.


The MSM is just beginning to catch on. :lol:

Edited by Nationalist

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The MSM is just beginning to catch on. :lol:

Makes sense most of the new build I've seen were flats in peripheral (sp?) areas sold to overseas investors (I live in London)

My interest is in the other side of this question, if new build has fallen hugely does this mean that 2nd hand/old stock (particularly houses) hasnt actually fallen much at all?

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The flip side of this story (if you take it as gospel), is that properties other than new build are down less than 9%.

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