Jump to content
House Price Crash Forum
Sign in to follow this  
Guest X-QUORK

Vi Admits That Times Are Hard...

Recommended Posts

Guest X-QUORK

Full press release from SmartNewHomes.com :

Housing market proves difficult

October 2005 10/10/2005

After several months of looking like recovery was on the way, the UK property market is proving difficult again with average house prices down according to data from SmartNewHomes.com, the UK’s leading new homes website.

The monthly report released today by SmartNewHomes.com reveals that the average price of a new home in the UK in September 2005 was £255,916, down 5.3% since the same time last year. This is the sixth consecutive month of negative annual price inflation and represents a sharp decrease on last month’s average price, down 2.3%. Prices are also down on average 2.1% over the last quarter which is the first quarterly decrease since May 2005.

Regionally, only Scotland, Wales and East Anglia escaped the wider market downturn reporting positive price growth over the last year. London remained the most expensive region of the UK with prices increasing yet further over the last few months. The East Midlands has the cheapest average new home price but despite this remained one of the least popular regions of the UK with more people moving out than moving in. This pattern was duplicated in the West Midlands and London with Scotland, the South West and Yorkshire and Humberside experiencing the reverse trend with an influx of homebuyers outnumbering departures.

David Bexon, Managing Director of SmartNewHomes.com, comments on the report: “Although we usually expect house prices to be picking up again after the summer slowdown at this time of year, we have experienced a further downturn in the market. This can be down to a number of factors with not least the pressure on the economy from the global oil crisis, limited consumer confidence and reduced high street spending contributing their parts.

“However the demand for housing and indeed new homes is still strong and therefore this month’s statistics are not likely to become a long-term trend. If the Bank of England responds to economic demands and reduces interest rates further next month, we are more likely to see the market returning to the stabilisation that has been present throughout the year to date rather than further decreases.”

The proportion of new apartments for sale increased substantially from contributing around a third of all new homes (36.7%) two years ago to over one half (55.8%) now. This illustrates how house builders are increasingly turning to smaller units to reach Government criteria for housing density and affordable housing provisions but places additional pressure on the supply/demand imbalance for larger family homes.

He refers to demand still being strong, but I suspect that this is down to re-mortgaging rather than actual new purchases.

Share this post


Link to post
Share on other sites

Full press release from SmartNewHomes.com :

Housing market proves difficult

October 2005 10/10/2005

After several months of looking like recovery was on the way, the UK property market is proving difficult again with average house prices down according to data from SmartNewHomes.com, the UK’s leading new homes website.

The monthly report released today by SmartNewHomes.com reveals that the average price of a new home in the UK in September 2005 was £255,916, down 5.3% since the same time last year. This is the sixth consecutive month of negative annual price inflation and represents a sharp decrease on last month’s average price, down 2.3%. Prices are also down on average 2.1% over the last quarter which is the first quarterly decrease since May 2005.

Regionally, only Scotland, Wales and East Anglia escaped the wider market downturn reporting positive price growth over the last year. London remained the most expensive region of the UK with prices increasing yet further over the last few months. The East Midlands has the cheapest average new home price but despite this remained one of the least popular regions of the UK with more people moving out than moving in. This pattern was duplicated in the West Midlands and London with Scotland, the South West and Yorkshire and Humberside experiencing the reverse trend with an influx of homebuyers outnumbering departures.

David Bexon, Managing Director of SmartNewHomes.com, comments on the report: “Although we usually expect house prices to be picking up again after the summer slowdown at this time of year, we have experienced a further downturn in the market. This can be down to a number of factors with not least the pressure on the economy from the global oil crisis, limited consumer confidence and reduced high street spending contributing their parts.

“However the demand for housing and indeed new homes is still strong and therefore this month’s statistics are not likely to become a long-term trend. If the Bank of England responds to economic demands and reduces interest rates further next month, we are more likely to see the market returning to the stabilisation that has been present throughout the year to date rather than further decreases.”

The proportion of new apartments for sale increased substantially from contributing around a third of all new homes (36.7%) two years ago to over one half (55.8%) now. This illustrates how house builders are increasingly turning to smaller units to reach Government criteria for housing density and affordable housing provisions but places additional pressure on the supply/demand imbalance for larger family homes.

He refers to demand still being strong, but I suspect that this is down to re-mortgaging rather than actual new purchases.

Quite an honest appraisal given their previously bullish statements. Not hard times for David Bexon though, he and his other investors sold out to the Trinity Mirror group for a combined 16mil in August

:o Could that be why the honesty can now emerge? Thye are on an earn out, but for the most part have cashed out. Great timing.

Share this post


Link to post
Share on other sites
Quite an honest appraisal given their previously bullish statements. Not hard times for David Bexon though, he and his other investors sold out to the Trinity Mirror group for a combined 16mil in August

Now that is interesting. DrBubb pointed out that in the US executives have been selling their holding in their own companies in the property sector. A sure sign that things were getting bad. Seems like it is happening over here too.

Rats leaving a sinking ship?

Share this post


Link to post
Share on other sites

Full press release from SmartNewHomes.com :

Housing market proves difficult

October 2005 10/10/2005

After several months of looking like recovery was on the way, the UK property market is proving difficult again with average house prices down according to data from SmartNewHomes.com, the UK’s leading new homes website.

The monthly report released today by SmartNewHomes.com reveals that the average price of a new home in the UK in September 2005 was £255,916, down 5.3% since the same time last year.

And that figure doesn't include all the free incentives given away to make the Land Registry prices look stable, what's the actual figure when you include the £20k cash backs, the free holidays, deposit paid, mortgage paid for a year, moving fees, part exchange, furnishings, furniture, land scaping and everything but the developers soul (if they have one).

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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.