Northern Slump Hits Home At Persimmon

[Guest The_Oldie]

http://www.thisismoney.co.uk/news/article....63&in_page_id=2

A SLOWDOWN in the housing market has finally caught up with Britain's most valuable builder, Persimmon, as it reported a 12% fall in sales from its northern division.

You wouldn't think that this article is based on the same figures as the Guardian story in the Blog, would you? .

[eurows]

No its amazing how they reported this story.

But who decides the spin.

[Bearfacts]

I liked the quote from Davidson (chairman of Persimmon ) "Conditions have been the worst since 1990. In hindsight it was worse than we expected." With reference to Halifax and Nationwide surveys, which havent indicated any problems in the market, he said " These surveys are all very well, but they only tell you so much. We are at the coalface. We know whats really going on in the industry" i.e don't believe them its much worse than their surveys suggest.

Edited August 24, 2005 by Bearfacts

[Guest growl]

It was the north of the country that saw the fastest and bigest fall in property prices during the last crash. Once the north turned that was it for the rest of the country.

[BuyingBear]

It was the north of the country that saw the fastest and bigest fall in property prices during the last crash. Once the north turned that was it for the rest of the country.

<{POST_SNAPBACK}>

Prices are most streched compared to incomes, BTL'er in search of yields have exacerbated this problem by reaching ever further North.

I can remember looking around Brighton a while ago and was preprepared for silly prices, actually I was suprised they weren't nearly as silly as prices now seen in the regions, if there is resistence to these prices in the South East where earnings do in some part justify higher prices (certainly not x6 though) and now a fall back in prices and activity... what of the regions?

If huge new 4 bed neo-georgian villas are not selling for £600k in SW London what chance is there for some poshed up £400k 70's Barratt job in Manchester, Birmingham, Liverpool or dare I say, Bradford?

There are more people in London capable of supporting a £600k mortgage than there are people capable of supporting £400k in the regions, the sort of people they're looking for don't exist, there may be a few dozen of them in each town but certainly not enough to support a market of say, 10,000 houses in any given conurbation.

Remember that post about that women angry that nobody has bought her mock stone farmhouse out in some village in the middle of nowhere in Yorkshire, she paid £190k in Oct 2002 and is pissed that nobody wants to pay £450k today... her buyer just doesn't exist, if you had that much cash you would have an established career and therefor already own property from years ago (and probably much nicer) and the local farmhands aren't going to pay those prices, plus you're 60 miles from any major city.

Edited August 24, 2005 by BuyingBear