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Gazumping Back In Sheffield Housing Market

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http://www.hallamfm.co.uk/Article.asp?id=1985349&spid=25619

Gazumping is back, and it's affecting people trying to find somewhere to live in Sheffield. The difference this time is it's not happening to house buyers, but to people trying to rent.

Gazumping usually happens in housing booms. It's where a price for a house is agreed and it looks like the sale is going through only for someone with more money (and desperate to buy the house) comes in at the last minute with a better offer and the seller agrees to go with them instead. When it first started happening in the 1980s it left many housebuyers stranded because they had already agreed to leave their own houses thinking their sale was completed.

But now it's happening in the Sheffield rental market. Estate agents in the city who say they've seen it happen, because Sheffield city centre is going through something of a rental boom.

With it so difficult for first-time buyers to afford deposits to buy, plus the lack of any new apartment complexes being built in the city centre, demand is far higher than supply and that's forcing prices up. Add the large number of new foreign students coming into the city and offering landlords up to 12 months rent up front for some properties and you have a scramble for homes. Some flats are being shown to five people at a time, while some people are applying to rent homes without actually having seen it!

That's ideal conditions for gazumping.

Great news for all of those with BTL in Sheffield.

Heard this little gem this morning on the radio.

Although from what I've seen driving around there are many empty flats still up for sale. Not that I'm doubting the EA.

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Although from what I've seen driving around there are many empty flats still up for sale. Not that I'm doubting the EA.

Indeed.

A quick search on Rightmove for flats within 1/2 mile of the centre returns 425 results. I know nothing of Sheffield... but still, that sounds like a lot.

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I doubt it, particularly the guff about students. Amateur BTLs don't like students, they want "professionals", not spotty teenagers spilling booze on the carpet and making the curtains stink of weed. They don't like foreign students either, as they don't pay the last month's rent and exit the country leaving the house in a mess. Students don't live in the city centre either, generally speaking. Student areas are well established and don't involve living in overpriced two bed new build flats

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I live in Sheffield and I can say that this article is solely due to the huge student population (35,000) who will have been looking for somewhere to live near either university at the mid to end of september.

Rest of the year it will be normal, with loads of rentals available July - September.

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I live in Sheffield and I can say that this article is solely due to the huge student population (35,000) who will have been looking for somewhere to live near either university at the mid to end of september.

Rest of the year it will be normal, with loads of rentals available July - September.

Let the landlords enjoy their little seasonal rush this year. With tuition fees rising they may not get one in future years.

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...With tuition fees rising they may not get one in future years.

I think more and more UK students will study in other countries as time goes by. Why live in the UK with a £600 a month flat rent bill if you can do the same course in Latvia with a £100 a month rent bill and 50p a pint beer? Nottingham Uni (IIRC) is running a course in China. Our local business school works with Birmingham (and offers two MBA degrees if you submit a dissertation in English and another in French), rents here are about €250-300 per month for student flats.

Coach fares across Europe are cheap and studying overseas might just give Brits the language skills boost they need to compete.

Buying Euan a nice flat to go to Uni might be a mistake Cherie :D

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Indeed.

A quick search on Rightmove for flats within 1/2 mile of the centre returns 425 results. I know nothing of Sheffield... but still, that sounds like a lot.

Does that include the 300 or so flats in the new 32 story St Paul's tower in central sheffield? I work with a guy who pays £500 pm for a tiny flat 'that you couldn't swing a cat in' on the competing Velocity Towers. He says they want £600ish upwards for a gaff in St Paul's.

Someone's actually renovating the dire (but listed, and over 1km long) Park Hill flats and when they come on stream again there will be nearly 1,000 flats, albeit social housing!

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Does that include the 300 or so flats in the new 32 story St Paul's tower in central sheffield? I work with a guy who pays £500 pm for a tiny flat 'that you couldn't swing a cat in' on the competing Velocity Towers. He says they want £600ish upwards for a gaff in St Paul's.

Someone's actually renovating the dire (but listed, and over 1km long) Park Hill flats and when they come on stream again there will be nearly 1,000 flats, albeit social housing!

They will be 3/4 private.

The renovations costs are £160k per flat.

FAIL

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I think more and more UK students will study in other countries as time goes by. Why live in the UK with a £600 a month flat rent bill if you can do the same course in Latvia with a £100 a month rent bill and 50p a pint beer? Nottingham Uni (IIRC) is running a course in China. Our local business school works with Birmingham (and offers two MBA degrees if you submit a dissertation in English and another in French), rents here are about €250-300 per month for student flats.

Coach fares across Europe are cheap and studying overseas might just give Brits the language skills boost they need to compete.

Buying Euan a nice flat to go to Uni might be a mistake Cherie :D

Globalisation for the education system...

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Why live in the UK with a £600 a month flat rent bill if you can do the same course in Latvia with a £100 a month rent bill and 50p a pint beer?

Because the courses would most likely be taught in Latvian - that well known language of international trade, commerce and diplomacy. What I think will happen, which is what seems to happen in much of the rest of the world, is that many more students will try and find courses within commuting distance of where their parents live.

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Because the courses would most likely be taught in Latvian - that well known language of international trade, commerce and diplomacy. What I think will happen, which is what seems to happen in much of the rest of the world, is that many more students will try and find courses within commuting distance of where their parents live.

Quite likely Russian too, which would be very valuable to learn.

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I think more and more UK students will study in other countries as time goes by. Why live in the UK with a £600 a month flat rent bill if you can do the same course in Latvia with a £100 a month rent bill and 50p a pint beer? Nottingham Uni (IIRC) is running a course in China. Our local business school works with Birmingham (and offers two MBA degrees if you submit a dissertation in English and another in French), rents here are about €250-300 per month for student flats.

Coach fares across Europe are cheap and studying overseas might just give Brits the language skills boost they need to compete.

Buying Euan a nice flat to go to Uni might be a mistake Cherie :D

This is purely a straw man argument, yes?

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What's that? the smell of BS!

A quick RM search for apts within 1/2 mile of Sheffield City Centre reveals there's loads. Litterally hundreds!

'.......offering landlords up to 12 months rent up front'. Cannabis factory then ;)

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They will be 3/4 private.

The renovations costs are £160k per flat.

FAIL

£160 k each you say. If there's ~ 1,000 then that's £160 million! I read that St Paul's tower cost £40m for it's 300 flats, so if those numbers are true then they could have flattened the Park Hill monstrosities, built 3 brand new skyscrapers, and still £20 or £30 mill change.

I'd have thought that the £160k flats would be mostly of interest to BTLers, and a lot would be rented out to people on housing benefit. I'd guesstimate that they'd not be worth more than £50-60k each to the BTLers.

Does not compute.....one way or the other the taxpayer is going to take a bath on these developments.

Another thing that's just struck me is how glibly we talk about chucking tens, or hundreds of millions about these days - it's like deficits of hundreds of £ billions, and debts of £ trillions make it seem like tens of millions is small change.

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£160 k each you say. If there's ~ 1,000 then that's £160 million! I read that St Paul's tower cost £40m for it's 300 flats, so if those numbers are true then they could have flattened the Park Hill monstrosities, built 3 brand new skyscrapers, and still £20 or £30 mill change.

I'd have thought that the £160k flats would be mostly of interest to BTLers, and a lot would be rented out to people on housing benefit. I'd guesstimate that they'd not be worth more than £50-60k each to the BTLers.

Does not compute.....one way or the other the taxpayer is going to take a bath on these developments.

Another thing that's just struck me is how glibly we talk about chucking tens, or hundreds of millions about these days - it's like deficits of hundreds of £ billions, and debts of £ trillions make it seem like tens of millions is small change.

http://www.building.co.uk/buildings/project-stage/the-future-looks-rosy-sheffields-park-hill-estate/5005768.article

£146 million for 974 flats, seems my earlier figure was a little bit over, assuming it is done to budget. Still way too expensive for a bit of cladding though.

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£160 k each you say. If there's ~ 1,000 then that's £160 million! I read that St Paul's tower cost £40m for it's 300 flats, so if those numbers are true then they could have flattened the Park Hill monstrosities, built 3 brand new skyscrapers, and still £20 or £30 mill change.

I'd have thought that the £160k flats would be mostly of interest to BTLers, and a lot would be rented out to people on housing benefit. I'd guesstimate that they'd not be worth more than £50-60k each to the BTLers.

Does not compute.....one way or the other the taxpayer is going to take a bath on these developments.

Another thing that's just struck me is how glibly we talk about chucking tens, or hundreds of millions about these days - it's like deficits of hundreds of £ billions, and debts of £ trillions make it seem like tens of millions is small change.

It's listed, largest in Europe, so knocking down wouldn't have been a good look.

Also, will probably be quite nice when sorted.

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http://www.building....5005768.article

£146 million for 974 flats, seems my earlier figure was a little bit over, assuming it is done to budget. Still way too expensive for a bit of cladding though.

good old taxpayer

Making Park Hill work financially has been a challenge. A key element is public sector funding. The Homes and Communities Agency (HCA) has awarded it £24.8m of which £14.8m is gap funding - the rest will go towards the social housing, which will be managed by registered social landlord, Great Places. Transform South Yorkshire, the housing market renewal agency, is contributing £13.5m and English Heritage has chipped in £500,000 towards the concrete repairs.

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good old taxpayer

Making Park Hill work financially has been a challenge. A key element is public sector funding. The Homes and Communities Agency (HCA) has awarded it £24.8m of which £14.8m is gap funding - the rest will go towards the social housing, which will be managed by registered social landlord, Great Places. Transform South Yorkshire, the housing market renewal agency, is contributing £13.5m and English Heritage has chipped in £500,000 towards the concrete repairs.

Concrete? Did someone say concrete?

Whoever thought spending £146m on a concrete structure is certifiably insane. No question about it.

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Concrete? Did someone say concrete?

Whoever thought spending £146m on a concrete structure is certifiably insane. No question about it.

Yes but it's an architectural treasure apparently... :ph34r:

I would love to know what sort of flats/houses could have been built on the land for that sort of money.

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And another thing. They say it's going to be 3/4 private.

My question is:

Are these places even mortgageable?

I saw some ads in a letting agy in Sheffield the other day that suggested that most council flats would cost £300-450 pcm. Brand new modern flats in places like St Pauls and Velocity towers can be had for £500-600 pcm with good security, a concierge in the lobby 24/7, etc. So if the most a BTLer can expect for Park Hill is £500 pcm then I'd stick with my guesstimate above of £50k(ish). So if housing benefit can cover that then I'd say they were mortgageable at those prices for investment purposes. So they should be worth about 100k each less than they'll cost to renovate.

But a private buyer just looking for a home - nah.

In 10 years time the most likely future for these places is to have enough tennants flogging or using drugs, and disposing of old TVs by chucking them from a 4th floor balcony to make the place one the least desirable habitations in South Yorks. Just like they were before they were closed and renovated.

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I saw some ads in a letting agy in Sheffield the other day that suggested that most council flats would cost £300-450 pcm. Brand new modern flats in places like St Pauls and Velocity towers can be had for £500-600 pcm with good security, a concierge in the lobby 24/7, etc. So if the most a BTLer can expect for Park Hill is £500 pcm then I'd stick with my guesstimate above of £50k(ish). So if housing benefit can cover that then I'd say they were mortgageable at those prices for investment purposes. So they should be worth about 100k each less than they'll cost to renovate.

But a private buyer just looking for a home - nah.

In 10 years time the most likely future for these places is to have enough tennants flogging or using drugs, and disposing of old TVs by chucking them from a 4th floor balcony to make the place one the least desirable habitations in South Yorks. Just like they were before they were closed and renovated.

I say 8ollox.

designers have installed wonderful colourful panels and transformed this hellpit into disneyland.

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I say 8ollox.

designers have installed wonderful colourful panels and transformed this hellpit into disneyland.

Yes, the orange and red panels would make me want to put down a deposit on a flat there....

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



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