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kev-all-in

Ipswich Hpc Gathering Momentum - Iceberg Ahoy!

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Hi everyone!

Apologies for my lack of posts - I'm an avid reader but tend to read on my phone which is a pain to post from.

Anyway had to share this from my local rag this evening. Its a local story, but I think its indicative of the fragility of the housing market nationaly.

Front page headline screams "Touble at Mill" (very drole.)

and goes on to tell how the developer of a huge 'landmark' (monstrosity) waterfront development has folded mid way through this massive project.

About a 3rd of the flats have been finished and are to be flogged off, presumably on the cheap as who the hell will want to live in an unfinished shell of a building that is probably littered with half finished bodges and leaks, and I can't imagine the mortgage companies falling over themselves to lend much on them. God only knows what'll happen to the rest of the building. The paper fails to mention how many units have already been sold (maybe none?).

This is supposed to be an award winning project, yet its failure has been blamed on oversupply !!! - I'm sure that the stupidly high prices didn't come into it!! :)

I think this has got to be a drag on flat and house prices throughout the town.

I bet there's LOADS of these development companies that are limping along, just barely scraping by all over the country.

It all feels very 2008 to me - I think phase 2 is beginning.... :D

(sorry this isn't a proper link - I've cut n pasted the article below, my highlights!!) :P

The Mill, Ipswich

Question marks are left
hanging over Waterfront

BY HOLLIE-RAE MERRICK

Tuesday, 25 May, 2010

15:00 PM

IPSWICH: The town’s Waterfront regeneration suffered a hammer blow today after it emerged the firm behind the landmark Cranfield Mill development has collapsed.

Wharfside Regeneration has been forced to call in administrators after falling victim to the effects of recession and a saturated property market.

The Cranfield Mill development, which earlier this month won the Royal Institution of Chartered Surveyors Project of the Year gong, includes a 23-storey tower block and incorporates the DanceEast Jerwood Dance House complex.

The firm’s demise comes only months after the developer behind the neighbouring Regatta Quay site suffered a similar fate.

City Living Developments was handed to administrators Grant Thornton earlier this year, halting work at the site which was set to include a hotel, a 220-seat theatre and flats.

Today, the administrator for Wharfside Regeneration, Baker Tilly, said an estate agent had been appointed to sell the flats which had been completed, while advice was being sought on the best course of action in relation to any incomplete properties.

Nigel Millar, of Baker Tilly, said that over a third of the property units had been completed and were ready for sale, while other units are “partly finished”. :lol:

He later said that he attributed the action as being “an effect of the recession on borrowings and perhaps the surplus of properties at the time.”

Residents and tenants will not be affected.

DanceEast’s artistic director Assis Carreiro told the Evening Star that she firmly believed that the news did not affect the dance company.

She said: “I do not think that it will effect us at DanceEast because we have an 125-year peppercorn rent our main building.

“I’m trying to see it as a positive thing because if the site is bought then it could end up being developed sooner with available funds.

“It is a very iconic building and there is still a huge amount of potential on the Waterfront and there may be a tough few years ahead but I’m still hopeful that the development of the area will continue.”

Former Ipswich Borough councillor Steven Wells, who previously voiced concerns over the development in times of recession, today said that he was “saddened and disappointed” by the administration of Wharfside Regeneration.

He said: “I have had concerns for quite some time, and I voiced those concerns. I deeply hope that development will be a success but as thousands of new homes are being built across Ipswich, I feel that this will mount more pressure onto the prices on the Waterfront.

“It is a high cost development and if things can’t improve then it is all only going to go one way – down hill. :lol: I hope I am wrong, but it is my fear.”

n What are your thoughts on the Waterfront developments? Write to Your Letters, Evening Star, 30 Lower Brook Street, Ipswich, IP4 1AN or
e-mail eveningstarletters@eveningstar.co.uk

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oversupply? But I thought there was a chronic housing shortage? Surely I have not been lied to?!

Similar story in Chelmsford, never actually read the full story (local paper had sold out) but the headline on the snadwich board was new homes plans on hold after developer goes bust. They supposed to be developing an old disused hospital.

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they overpaid for land.

they overborrowed for bonuses.

they filled the car park with Bentleys

and you wonder why they bust rather than sell at a market rate people can afford.

no, it costs peanuts to build....it costs caviar to pay £1m wages to builders.

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they overpaid for land.

they overborrowed for bonuses.

they filled the car park with Bentleys

and you wonder why they bust rather than sell at a market rate people can afford.

no, it costs peanuts to build....it costs caviar to pay £1m wages to builders.

Exactly and that is a summary of many of the businesses in this country.

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they overpaid for land.

they overborrowed for bonuses.

they filled the car park with Bentleys

and you wonder why they bust rather than sell at a market rate people can afford.

no, it costs peanuts to build....it costs caviar to pay £1m wages to builders.

Well put, and I ben thinking for the last 10 years or so that that is the whole problem with the UK (and others) economy, far too many snouts at the trough eating more than they can digest, and then begging the government for subsidies so they can get another course down their gullets (eg, cheap imimgrants, outsourced to India, bellow inflation interest rates etc etc )

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they overpaid for land.

they overborrowed for bonuses.

they filled the car park with Bentleys

and you wonder why they bust rather than sell at a market rate people can afford.

no, it costs peanuts to build....it costs caviar to pay £1m wages to builders.

Exactly how many companies that get in trouble are run. And many are run like this in the UK.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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