Jump to content
House Price Crash Forum
juvenal

Vi Boss Of Redrow Builders Says House Prices Not Too High

Recommended Posts

Asked the direct question 'Are house prices too high?'

Redrow Builders founder Steve Morgan said on R5 this morning (7.43am) that house prices are not too high. The problem is all about (as you would expect)the size of deposits being asked by lenders.

Good that the taboo question was asked at all, but why do presenters never follow up with the obvious response?:

"If house prices were lower, deposits would be smaller, mortgages less punitive - isn't that the solution"?

All I ever hear is presenters who open this housing topic with VI's, then invariably fail to follow up with the questions everyone wants asked.

Share this post


Link to post
Share on other sites

He was also on BBC Breakfast News. Asked exactly the same question. When the BBC start asking things like this you really know the tide has turned.

And for the record IMO he didn't looked like he believed what he was saying. Very nervous and twitchey and quite scared looking to be honest.

Share this post


Link to post
Share on other sites

He was also on BBC Breakfast News. Asked exactly the same question. When the BBC start asking things like this you really know the tide has turned.

And for the record IMO he didn't looked like he believed what he was saying. Very nervous and twitchey and quite scared looking to be honest.

+1

I thought exactly the same... he was showing all the "tells" of someone who was knowingly talking complete 80ll0cks.

In fact it was so obvious, I reckon anyone from Joe Public would have picked up on it too.

Share this post


Link to post
Share on other sites

I heard this on R5 and I was struck by my remarkably relaxed repsonse.

For the last few years this sort of VI sh!te has caused a Tourrettes tick, but today I smiled.

Stevie boy has all of the information to hand. He acknowledged that FTBs have to pay off a student loan and find a deposit that is a big percentage of a high price. He acknowledges that the BoMaD will / has run dry.

And yet he is allowed to go on the radio and offer his expert view that the solution is to return to risky lending

There are none so blind as those who will not see!

Edited by Caveat Mortgagor

Share this post


Link to post
Share on other sites

+1

I thought exactly the same... he was showing all the "tells" of someone who was knowingly talking complete 80ll0cks.

In fact it was so obvious, I reckon anyone from Joe Public would have picked up on it too.

Glad it wasn't just me. He looked properly scared :lol:

And yes it was so obvious it wont just be us uber doom monger HPCers that would pick up on it. I think the fear stage has well and truly begun.

Denial

Return to normal

Fear

Share this post


Link to post
Share on other sites

Simple: Do not buy Redrow.

Lets start holding these VI people to account.

Send him an Email:

http://www.redrow.co...contact-redrow/

Hello.

As a FTB, priced out of housing, for ten years. I have paid close attention to what drove rising house prices.

The comments made by Steve Morgan this morning, that house prices are not too high, I found unbelievably offensive and angering.

I'm sure like many other FTB's who heard the comments on Radio 5, I will NOT be buying a Redrow home

Even after house prices crash back to their long term inflationary affordability as a proportion of UK median household income. IE. A 50% reduction from peak prices, as has happened elsewhere in the world.

Edited by Dan1

Share this post


Link to post
Share on other sites

He is correct...If he can sell all the houses he needs to, then the price is not too high.

however, if he is complaining he cant sell his houses, then the price IS too high, regardless of what he says.

Factors beyond his control are his market...he needs to adapt...Otherwise, redrow will go the way of Woolworths.

Share this post


Link to post
Share on other sites

'The Fivelive financial guy said that with Tier One the banks weren't going to lend vast sums on mortgages as it meant they need bigger reserves.

I just felt that it was going over the guy's head. '

.........and this is exactly right Masked Tulip. The amount of ignorance from people who work in the housing sector is scary. I know IFA's, Estate Agents, Developers etc and none - to a man - could tell you the relevance of bank capital to the availability of mortgages/housing mkt. They have no idea about how in the last 10/15yrs the securitisation mkt allowed banks to transfer mortgages off balance sheet, and into SPV's , thus freeing up capital to provide for another round of wreckless mortgage lending.........we know those days are gone, and yet all I hear is the constant bleat of "when are banks going to return to normal lending practices?'.......well they have. it was the last 15yrs that were abnormal. ........20% deposit and 3x your basic - thats normal. If the man from Redrow cant get his head around that, then he deserves all the sh1t to fall into his lap from a vast height.

Share this post


Link to post
Share on other sites

The Redrow guy is crazy, here's a couple of flats for sale in my post code area.

http://www.rightmove.co.uk/property-for-sale/property-31280771.html

Was £99k, now £79k. You can get a 3 bed semi for the same amount.

And another gem

http://www.rightmove.co.uk/property-for-sale/new-homes/property-27622873.html?showcase=true&premiumA=true

Again a 3 bed semi is available for the same amount.

Share this post


Link to post
Share on other sites

He is correct...If he can sell all the houses he needs to, then the price is not too high.

however, if he is complaining he cant sell his houses, then the price IS too high, regardless of what he says.

Factors beyond his control are his market...he needs to adapt...Otherwise, redrow will go the way of Woolworths.

So Redrow Homes are mainly overpriced tat?

July 8th, 2009

Since 2004 the residents of the Redrow Poets Wood housing development in Streetly have been fighting to get their new homes brought up to standard. Some of the homes have been knocked down and rebuilt but the problems persist.

One resident of the estate, Veronica Fitzgerald, exchanged at the beginning of 2004 but had to wait two years to move in while Redrow rebuilt the property.

The NHBC has received more that 20 complaints from residents of the estate with faults including loose tiles, dodgy light fittings and flooding.

Edited by erranta

Share this post


Link to post
Share on other sites

So Redrow Homes are mainly overpriced tat?

July 8th, 2009

Since 2004 the residents of the Redrow Poets Wood housing development in Streetly have been fighting to get their new homes brought up to standard. Some of the homes have been knocked down and rebuilt but the problems persist.

One resident of the estate, Veronica Fitzgerald, exchanged at the beginning of 2004 but had to wait two years to move in while Redrow rebuilt the property.

The NHBC has received more that 20 complaints from residents of the estate with faults including loose tiles, dodgy light fittings and flooding.

nonsense, a large deposit would fix all these issues. I blame the local taxi firm...their radios are causing this damage with radiation.

Share this post


Link to post
Share on other sites

So Redrow Homes are mainly overpriced tat?

July 8th, 2009

Since 2004 the residents of the Redrow Poets Wood housing development in Streetly have been fighting to get their new homes brought up to standard. Some of the homes have been knocked down and rebuilt but the problems persist.

One resident of the estate, Veronica Fitzgerald, exchanged at the beginning of 2004 but had to wait two years to move in while Redrow rebuilt the property.

The NHBC has received more that 20 complaints from residents of the estate with faults including loose tiles, dodgy light fittings and flooding.

All the lads on the site will know exactly when the NHBC guy is coming round. Site Manager will rally them that morning. [Get the hard hats on today lads!]

NHBC guy led round by the nose, by the site manager. Anything NHBC guy spots that he questions. [he has to do this now and again, to justify his position.]

Tradesman's called in.

Tradesman shows indignation that his work has been questioned.

NHBC guy backs down. [Happens 4 or 5 times throughout project]

Off he pops, whilst two joiners bang up Clip and groove floorboards. Nail gun a bit of 2x4, doorframes, window frames, and scrap together. Very rough. Nails hanging out.

Plasterboard guys come in, staple, and nail gun plasterboard onto the wooden frames. BankBang Bang! ~In and out. onto next job.

Sparkies arrive, RUN through house, drilling holes, with a circular bit in plasterboard, where wires will be pulled through. [Half an hour]

Labourer stops hiding from site boss, runs around after them with sweeping brush.

bla bla.

Sales people meet prospective buyers of wafer thin paper mache house. Who wander around with eyes wide open. [Potential buyers always be treated as demi-gods]

£400k please. [Everyone of the tradesmen drinking awful coffee from scale filed kettle in the site cabin, secretly thinking F@@g Ell!! What a rip off!! Not worth a third of that!!]

KerChing!

Edited by Dan1

Share this post


Link to post
Share on other sites

All the lads on the site will know exactly when the NHBC guy is coming round. Site Manager will rally them that morning. [Get the hard hats on today lads!]

NHBC guy led round by the nose, by the site manager. Anything NHBC guy spots that he questions. [he has to do this now and again, to justify his position.]

Tradesman's called in.

Tradesman shows indignation that his work has been questioned.

NHBC guy backs down. [Happens 4 or 5 times throughout project]

Off he pops, whilst two joiners bang up Clip and groove floorboards. Nail gun a bit of 2x4, doorframes, window frames, and scrap together. Very rough. Nails hanging out.

Plasterboard guys come in, staple, and nail gun plasterboard onto the wooden frames. BankBang Bang! ~In and out. onto next job.

Sparkies arrive, RUN through house, drilling holes in plasterboard, where wires will be pulled through. [Half an hour]

Labourer stops hiding from site boss, runs around after them with sweeping brush.

bla bla.

Sales people meet prospective buyers of wafer thin paper mache house. Who wander around with eyes wide open.

£400k please. [Everyone of the tradesmen secretly thinking F@@g Ell!! What a rip off!! Not worth a third of that!!]

KerChing!

Pretty much spot on about the checks, you get warning.

Lol about an NHBC agent backing down.

Any faults found by the NHBC agent go into a site book. To many of the same bye bye NHBC.

One time a site manager informed the bricklayer subbie that an inspection was due and he was on course for best site agent award. The inspection found a wall minus any cavity ties :lol: The site agent was like the guns of navarone, i want all them bricklayers sacked.

Basically the NHBC is just an insurance policy and the checks are a way of minimizing any claims. And i can assure any faults found are rectified. NHBC costs between £1k-£2k depending on size and who is buying it.

Share this post


Link to post
Share on other sites

Pretty much spot on about the checks, you get warning.

Lol about an NHBC agent backing down.

Any faults found by the NHBC agent go into a site book. To many of the same bye bye NHBC.

One time a site manager informed the bricklayer subbie that an inspection was due and he was on course for best site agent award. The inspection found a wall minus any cavity ties :lol: The site agent was like the guns of navarone, i want all them bricklayers sacked.

Basically the NHBC is just an insurance policy and the checks are a way of minimizing any claims. And i can assure any faults found are rectified. NHBC costs between £1k-£2k depending on size and who is buying it.

I worked for a well known housebuilding company for some time...........[Not Redrow, but a similiar size company]...........[between moving cities, and my 'proper job']

When the houses cannot be sold, and you happen to call the estate agent.

You inform her that you were on the site, building the very houses she is trying to sell, from the foundation up!

And anyone involved in the project knows they are worth about £65k.

[Rather than the £200k price tag the d1psh1t EA has it marketed for.]

There is then a deep bitter silence. Followed by soemone sharply asking for your name, so they can 'grass' you to your old employer for speaking the truth.

That's when you hang up.

Edited by Dan1

Share this post


Link to post
Share on other sites

So Redrow Homes are mainly overpriced tat?

July 8th, 2009

Since 2004 the residents of the Redrow Poets Wood housing development in Streetly have been fighting to get their new homes brought up to standard. Some of the homes have been knocked down and rebuilt but the problems persist.

One resident of the estate, Veronica Fitzgerald, exchanged at the beginning of 2004 but had to wait two years to move in while Redrow rebuilt the property.

The NHBC has received more that 20 complaints from residents of the estate with faults including loose tiles, dodgy light fittings and flooding.

non of you have said it seems cheaper to knock the house and rebuild it again, if they are able to do that then prices are to high.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 311 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.