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The Masked Tulip

Persimmon Pulls Out Of House Building In Parts Of South Wales Valleys

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One of Wales' biggest house builders says it is to stop building homes in parts of the south Wales valleys, saying the sites do not make money.

Persimmon Homes said it does not make enough profit on developments north of Pontypridd because of low sale prices.

It also blamed Welsh government red tape, which it claimed added £3,000 to the cost of building a house compared with many parts of England.

The Welsh government said it had relaxed some of these regulations.

Last year fellow developer Redrow said parts of the country risked becoming no-go areas if tougher building regulations were introduced in Wales.

Full story and video at:

http://www.bbc.co.uk/news/uk-wales-24288018

IMPO they don't want to build affordable homes. They want to build so-called executive homes costs many hundreds of thousands.

I think I heard it right just now on the Welsh News that the builders need to make, wait for this, 51% profit per house!!! I couldn't believe my ears!

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I think I heard it right just now on the Welsh News that the builders need to make, wait for this, 51% profit per house!!! I couldn't believe my ears!

Do they define "need"?

It sounds like they mean "we can make 51%, so we're not going to bother for a mere 15%", but I may be being ungenerous and they just don't know what "profit" means.

Edited by tomandlu

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Do they define "need"?

It sounds like they mean "we can make 51%, so we're not going to bother for a mere 15%", but I may be being ungenerous and they just don't know what "profit" means.

If Wales Today stick tonight's prog up on iplayer over the weekend I will post a link to it. I must have heard that wrong... but I fear I didn't.

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This tallies with what I have heard, margins are thin and there isn't much profit any more in building houses in non-desireable areas. I doubt they're making anywhere near 51%, that must be some gross margin. Maybe £10k on a £125k house.

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Basically, the people in large parts of Wales can't afford the new builds so the builders are stopping building.

That has all sorts of rammifications for ALL parts of Wales. In time, dare I say it, it will have knock-on affect for all property in Wales I think.

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Basically, the people in large parts of Wales can't afford the new builds so the builders are stopping building.

That has all sorts of rammifications for ALL parts of Wales. In time, dare I say it, it will have knock-on affect for all property in Wales I think.

And I suppose there will be street protests and suchlike over the thousands of homeless left wandering round the Valleys in the winter. Not. Great news, the credit is no longer there and deflation stalks the hutch erectors.

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Aural dyslexia?

I have an aural?

I have long been of the opinion that it would be cheaper to close the Valleys down and move everyone to Cardiff. They oculdn't moan about there not being work then. There just wouldn't be any in Cardiff!

The Valleys as they now are did not exist before the coal industry. When the coal mines were closed they should have shipped the communities to the coast.

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I have an aural?

I have long been of the opinion that it would be cheaper to close the Valleys down and move everyone to Cardiff. They oculdn't moan about there not being work then. There just wouldn't be any in Cardiff!

The Valleys as they now are did not exist before the coal industry. When the coal mines were closed they should have shipped the communities to the coast.

Cardiff as it is now, didn't exist before the coal industry too. At least the Valleys do have communities to speak of, no matter how impoverished they are and how much Mcat are going up their noses. Just a shame Noah Ablett's style of syndicalism didn't come to fruition.

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Full story and video at:

http://www.bbc.co.uk/news/uk-wales-24288018

IMPO they don't want to build affordable homes. They want to build so-called executive homes costs many hundreds of thousands.

I think I heard it right just now on the Welsh News that the builders need to make, wait for this, 51% profit per house!!! I couldn't believe my ears!

I'm very happy about this development, or rather, lack of it :) Been in RCT for 5 years now, still love it. Positives as mentioned before: very affordable housing with character, strong community, amazing countryside (cycling, walking, viewing, nature-ing), prices in the shops are looooow compared to other places in the UK, zero green-welly brigade (perhaps the best part of living here!!). There is one of these existing Persimmon-type developments just outside Ponty. The houses look very small, esp for £160k, or whatever it is they want for them. Imo they also *spoil* the landscape.. I like driving through the valleys and seeing the character of the area. I don't wanna see that type of estate. Great to know that this is at least one area that hopefully now won't be blighted.

IRONIC that their spokesman is trying to make out like it's a bad thing.....and trying to make out that 'people will follow the housing down towards Cardiff'... Errr... Ya. Uni of Glamorgan looks strong to me. The road up to Aberdare - always always busy. Lots of life going on here, people going about their days looking fairly happy to be here with their 50-100k houses. Good mix of old and young people. Yeah, sure there are problemos here....as with anywhere....but bitter comments from Persimmon/Redrow about the valleys becoming 'no-go' areas. Shut the *bleep* up and go back to yer 4 bed *executive* cookie cutter, with 4 x 4 and Pruis on't drive, and sit on the M25 for 3-4 hours a day, every day. Enjoy!! And good riddance!!

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I'm very happy about this development, or rather, lack of it :) Been in RCT for 5 years now, still love it. Positives as mentioned before: very affordable housing with character, strong community, amazing countryside (cycling, walking, viewing, nature-ing), prices in the shops are looooow compared to other places in the UK, zero green-welly brigade (perhaps the best part of living here!!). There is one of these existing Persimmon-type developments just outside Ponty. The houses look very small, esp for £160k, or whatever it is they want for them. Imo they also *spoil* the landscape.. I like driving through the valleys and seeing the character of the area. I don't wanna see that type of estate. Great to know that this is at least one area that hopefully now won't be blighted.

IRONIC that their spokesman is trying to make out like it's a bad thing.....and trying to make out that 'people will follow the housing down towards Cardiff'... Errr... Ya. Uni of Glamorgan looks strong to me. The road up to Aberdare - always always busy. Lots of life going on here, people going about their days looking fairly happy to be here with their 50-100k houses. Good mix of old and young people. Yeah, sure there are problemos here....as with anywhere....but bitter comments from Persimmon/Redrow about the valleys becoming 'no-go' areas. Shut the *bleep* up and go back to yer 4 bed *executive* cookie cutter, with 4 x 4 and Pruis on't drive, and sit on the M25 for 3-4 hours a day, every day. Enjoy!! And good riddance!!

Fair comment.

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