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Marina

Another Twist On The Lack Of Ftbs

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We are all aware of the over-supply of new 2 bed flats - built for investors but now not being sold.

When they are sold, who is buying? Looking at the cars in the car park at a local block where they seem to have sold 5 of the 24 I would say it is elderly down-sizers or maybe middle-aged divorcees.

It certainly isn't youngsters.

So there are is a large number of 2 bed flats that are not going to have a chain above them.

And now the BTLs seem to be trying to leave the market in droves. Most of the blocks of flats near me have loads of For Sale signs up. These flats too are not going to have a chain above them.

So, all these flats are going to get sold to FTBs or maybe second time buyers with a FTB below them .... but the chain will stop there.

I can see that anyone trying to sell anything that would normally be above a 2 bed flat in a chain is not going to get a sale easily - with all those 'no onward chain' flats available to be snapped up at bargain prices.

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These ‘apartments’ cost about 30-50% more on a square footage basis than older stock near city centres. Service charges, lack of car parking and poor to non existence rental returns, and no owner occupier market for this type of flat will see prices fall for quite a while.

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these fashionable blocks which seem so footballers wifes at the moment, will become tomorrows high rise tenant nightmares.

once the bubble pops we will be able to see these cheap built shoeboxes get all the usual problems. pee in the stairs. vandals. noisy neighbours. booming music and crashing prices. poor build quality and lack of general repairs. you might decorate your inner flat - but whos painting the exterior ? they will shab up in a few years. a bit of areosol spray. a few choice muggings. dog sh1t.

people could have paid 200k for something which may be worth as little £20-30k in 5 years once it gets chavvy ? the local authority might buy half the empty block for doleys to live in and shout out the windows at cha'.

imagine in the 1960s if the tower block living was hyped to investros like today.? prices would have soured as the concept and buildings looked good. it only take a few years to sour. flats are for poor quality living. unpoliced and too close to other chavvy humans or alcohol fuelled idiots.

there are no shops and no community spirits.

this is a real quagmire. god help you if you just sunk 200k in that. id be sweating.

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What potenital owner occupier/FTB in their right mind will want to purchase in a block that is stuffed full of renters/HB tenants - which some of the new build looks like it is destined for?

It was a good marketing wheeze for the builders to make a huge amount of money out of not a lot of building materials. Now that the bubble is over those same builders seem to be bemused/confused as to what they need to do i.e. building housing for people to buy and live in. If they struggle to make money at prices as they are now they must be hugely ineffcient, wasteful enterprises and deserve to be wiped out and replaced by a crop of alternatives that are better rund and have longer term strategies.

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I can see that anyone trying to sell anything that would normally be above a 2 bed flat in a chain is not going to get a sale easily - with all those 'no onward chain' flats available to be snapped up at bargain prices.

Wasn't it a couple of months back that Barratt announced real difficulty selling their 4 bed new builds, because people were stuck in chains and couldn't move into them?

There was a thread on the C4 forum recently started by someone who had had their (I think, 3 bed, circa 180k) home on the market forever.

The original poster made a comment about the buyers pulling out and the low offers and said "I don't think these people have the money".

I'm not sure if he realised quite how right he/she probably was.

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Service charges, lack of car parking and poor to non existence rental returns, and no owner occupier market for this type of flat will see prices fall for quite a while.

Imagine paying £150pcm for service charges and ground rent on a 2-bed flat. Move to Bromley and you can do just that !!!

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these fashionable blocks which seem so footballers wifes at the moment, will become tomorrows high rise tenant nightmares.........

RFD, couldn't agree more.

Visit Manchester & Leeds in a few years time to see some particularly shabby looking examples.

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What potenital owner occupier/FTB in their right mind will want to purchase in a block that is stuffed full of renters/HB tenants - which some of the new build looks like it is destined for?

But it said in the brochure this was an executive flat that must mean they're all being bought by top executive directors, right? ;)

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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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