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Second Homes Increasing In The South West


bricor mortis
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I watch Lillicrap pretty closely (various reasons) and it's a bloodbath at the high end. For example

They've got about 50 houses on their books at £1 million-plus. They are selling something like 1 every 2 months, so they have about 10 years' supply. Some have been discounted 10 or 20%, they're still not shifting

Take eg Restronguet Point. There are probably only 30 houses on the Point, 7 are for sale all at £1 million plus. Not one has sold since March 2010 despite some being discounted nearly 20%.

L-C are leaving the million pound "solds" on the website for months and months to make it look like they are shifting. (Jackson Stops doing the same thing). But when you dig down to it all the activity is at £500k and below. Why? I guess because the incomers and second homers and "investors" have stopped coming with silly money. Only "ordinary" people (OK wealthy ones like GPs) are buying.

Savills seem to be sending a very clear message to their high end customers that you have to cut by a large amount:- "However, properties that have been reduced by 20 per cent have attracted the most interest and most frequently led to a sale". I wonder what "most frequently" means? "Not very frequently" I expect.

Interesting stuff

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I watch Lillicrap pretty closely (various reasons) and it's a bloodbath at the high end.

Same here, the price falls are pleasing. What's also good to see is houses for sale which are already empty; owners *have* to sell, so there will be more price falls.

I've also seen a very nice house in Truro reduced from 950k to 875k, it'll sell for closer to 750k I bet.

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The problem is, it doesn't help "ordinary" buyers that much. I think prices are fairly sticky at that 500k and below level, because there are so many retirees in no hurry to sell. Certainly I've seen 20% drops at the high end, but only 5% or so at the low end. I think the big drops for "ordinary" houses will start in the spring. Why? Because everyone and their dog in Cornwall is an amateur property developer. Loads of people I know & loads of houses I drive past frequently have the classic signs:- transit or pickup in the drive; enormous extension "nearly" finished ie watertight but not rendered or interior fitted out, piles of building materials in the drive, etc etc. I know people who are getting desperate for cash flow and will have to shift these in the spring, finished or not. I expect a flood of motivated sellers in the spring, and a serious leg down in prices, particularly of this "nearly finished" stuff.

IMHO the problem is, these "nearly finished" places are more or less worthless. Buyers of them would need a bunch of cash, say 50k, to finish them off. And what ordinary buyer has got 50k cash in addition to a big deposit?

So my predictions for the Cornish spring are:-

- estate agent bankruptcies or massive downsizing, particularly the high end agents because the premium business model doesn't work any more;

- a flood of "nearly finished" development initially at crazy high prices, as the amateur properdeeee developers try to cash out

- but very rapid drops in these as the summer progresses and desperation for cash gets overwhelming

We shall see....

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Quite a few of the smaller NHS centres in cornwall are being closed which will make it a lot less attractive as a place to retire to.

I don't think many people think about that before they come down. We didn't, and the thought of being treated at the rat infested hellhole which is Treliske now makes me shudder. Maybe if I paid loads for BUPA they would chopper me to the John Radcliffe at the first sign of trouble?

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I don't think many people think about that before they come down. We didn't, and the thought of being treated at the rat infested hellhole which is Treliske now makes me shudder. Maybe if I paid loads for BUPA they would chopper me to the John Radcliffe at the first sign of trouble?

I heard some daft woman on BBC Radio Cornwall wobbling on about the NHS being the envy of the world. She sounded like she had never been further than Plymouth.

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