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apom

New Unfinished Developments

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I have heard recently of an example of someone trying to get a mortgage against a new property in an unfinished development.

Essentially even with a 50% deposit the lender was concerned that if the development was not completed then the properties value would drop.

The buyer has been in the market for so long that their equity is huge anyway.. they don't consider it as their money, only a buffer against the higher cost of the houses that they buy when they move up the ladder..

so mortage lenders are concerened now about the potential that new developments may not be needed or sold in todays market.

I have mentioned before that we have more homes per head of capita then we have since the war..

that the new generations coming trough are smaller then before..

that many rental properties are empty..

do we have too many homes.. Have gready developers just gone too far in the quest to build and sellas many as possible.

In the last five years the amount of new building in any area is bigger then I have ever seen.

New estates, new "executive apartment".. has supply also managed to outstrip demand...?

Take a look about you.. see all that is new.. with more dying of in old age then are being born.. why do we need all these houses...?

Edited by apom

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I have heard recently of an example of someone trying to get a mortgage against a new property in an unfinished development.

Essentially even with a 50% deposit the lender was concerned that if the development was not completed then the properties value would drop.

The buyer has been in the market for so long that their equity is huge anyway.. they don't consider it as their money, only a buffer against the higher cost of the houses that they buy when they move up the ladder..

so mortage lenders are concerened now about the potential that new developments may not be needed or sold in todays market.

I have mentioned before that we have more homes per head of capita then we have since the war..

that the new generations coming trough are smaller then before..

that many rental properties are empty..

do we have too many homes.. Have gready developers just gone too far in the quest to build and sellas many as possible.

In the last five years the amount of new building in any area is bigger then I have ever seen.

New estates, new "executive apartment".. has supply also managed to outstrip demand...?

Take a look about you.. see all that is new.. with more dying of in old age then are being born.. why do we need all these houses...?

Or have the banks gone too far in opening up the money supply pipe to such an extent that it is spraying crap everywhere indiscriminately?

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There is a new in little 'executive' estate near me of about 20 houses - built by a well known national builder - where I believe nearly all the properties are empty and up for sale or to let... or both. Most have been like that now for a year.

The prices the builder asked for are, IMPO, ridiculouse. The prices asked by those who bought from the builder are even more ridiuclous.

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There is a new in little 'executive' estate near me of about 20 houses - built by a well known national builder - where I believe nearly all the properties are empty and up for sale or to let... or both. Most have been like that now for a year.

The prices the builder asked for are, IMPO, ridiculouse. The prices asked by those who bought from the builder are even more ridiuclous.

In the past trough many half built estates moved from executive housing to social housing as the builder desired to build whatever could be sold at that moment in time. No bank is going to rush to lend on a 5 bedroom executive house in what ends up being the middle of a housing association council estate.

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All very evident already with the shared equity schemes.

I always thought that was the government throwing down the gauntlet to banks and building societies.

It goes something like "well, if you're prepared to lend at up to 130% of a properties value, fuelling the boom, put your money where your mouth is and risk 50% of the purchase price yourselves."

Hey presto - at least two banks / building societies have pulled out of negotiations for this scheme and aren't falling for it.

They'll lend to you, provided you are completely liable, and they stand a good chance of gettign their money back. It's just business.

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Look at this..

well odd looking graph...

http://www.statistics.gov.uk/cci/nugget.asp?id=6

Look at the age rate that FTB's are..20-35..

Look at the big bubble above that..

interesting..

hmmnnn.. more of us then before.. that is what we are told in the media..

We need more houses...

they tell us that..

there are less of us.. by a fair old chunk..

So..

we need less houses and they are building more..

hmmnn..

I am not overly bright.. can anyone else see any flaws here...?

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Look at this..

there are less of us.. by a fair old chunk..

So..

we need less houses and they are building more..

hmmnn..

I am not overly bright.. can anyone else see any flaws here...?

more people are living on their own - so there is more demand for housing

http://news.bbc.co.uk/1/hi/scotland/4197026.stm

More than a third of people in Scotland now live on their own, according to figures from the registrar general.

There were 2.25 million households in 2004 - a 10% increase since 1991, despite a fall in the population

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No.... don't believe that one..

they have been pulling it for years..

not living on their own.. but as in they are not with a partner.

shared housing is more common then it was a decade ago.

People do not stay with their parents and then move in with a partner..

they move in with friends.

This is considered to be living alone when figures are published.

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In the past trough many half built estates moved from executive housing to social housing as the builder desired to build whatever could be sold at that moment in time. No bank is going to rush to lend on a 5 bedroom executive house in what ends up being the middle of a housing association council estate.

Do lenders really think this way?

I thought today that there were now new laws that ALL new house builds had to have a mixture of private and social housing?

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No.... don't believe that one..

they have been pulling it for years..

not living on their own.. but as in they are not with a partner.

shared housing is more common then it was a decade ago.

People do not stay with their parents and then move in with a partner..

they move in with friends.

This is considered to be living alone when figures are published.

No, they look at the number of people who actually live in households. It isn't looking at number of people who are single, but those who live alone. It is much more normal to live alone now than it was 10 years ago - in my close there are only two couples - each of the other 6 flats has only one person living in them.

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No, they look at the number of people who actually live in households. It isn't looking at number of people who are single, but those who live alone. It is much more normal to live alone now than it was 10 years ago - in my close there are only two couples - each of the other 6 flats has only one person living in them.

This is sad - I wonder why. Well, I know why but it is still sad.

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No, they look at the number of people who actually live in households. It isn't looking at number of people who are single, but those who live alone. It is much more normal to live alone now than it was 10 years ago - in my close there are only two couples - each of the other 6 flats has only one person living in them.

True, but single occupancy = single income = less affordable.

Still not an encouraging picture for housing.

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  • 302 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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