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eric pebble

Uk Property Market Saturated With Over-supply Of Flats

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Surely a sign of the times - if a mortgage co: shuts out potential business - that must mean things are bad....

http://investing.reuters.co.uk/news/newsAr...T-NEWBUILDS.xml - yes it's in the top window - but THIS IS A SIGN......

Buy-to-let lender drops new-builds on valuation grounds

LONDON (Citywire) - For those of us who have always thought that 'special offers' from property developers are largely a rip-off, there is evidence from the professionals that we were not wrong.

Buy-to-let lender The Mortgage Works has announced that it is not accepting any new applications for buy-to-let mortgages on newly built properties. From now the lender will only accept buy-to-let applications on properties aged over one year. All current applications in the pipeline will be honoured, and the change only affects new buy-to-let mortgage applications.

"Owing to the current over-supply of newly built property, valuation in this sector is more of an art than a science," is the explanation from Matthew Wyles, director of The Mortgage Works. "Some developers are now prepared to do deals on price outside of the formal contract."

Edited by eric pebble

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Any one with half a brain can walk around Manchester and see over supply. Except developers apparently.

Not just Manchester..... MANY many places in south too -- Bournemouth, Sussex coast, many parts of London......

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Not just Manchester..... MANY many places in south too -- Bournemouth, Sussex coast, many parts of London......

Leeds.....Royal Armouries area just to the South of the city centre .........will be a BTL bloodbath.......

Thousands of Yuppy flats built on a wasteland...........with no amenities whatsoever..................and a cramped 2 bed hotel style flat is as much as a 3 bed house with as garden in a nice suburb.......

These flats will lose 50% of their value.......

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These flats will lose 50% of their value.......

Only 50%?

I'm expecting the 'executive flats' around here to lose more like 85% by the bottom of the crash (300k-ish to 50k-ish): there are far, far too many and they're far too crappy to justify a price higher than that for any self-respecting owner. Add a few neighbouring BTLs renting them out to housing benefit chavs, and you'll have plenty of time to regret paying more than 50k to buy one.

Edited by MarkG

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Same in Scotland. Swathes of 2 bed 2 br luxury flats (more being built too). They look nice but not worth the money. The penthouses are the same price as some 3/4 bed 2/3 yr. old houses with en suite and garage. This is a town not a city. It's the same in neighbouring large towns and of course, our cities.

Have been watching the prices now and again and have a good look when we drive past. No lights on in many, to let signs alongside for sale signs on same property, some are reduced and still they sit there. Stressed market.

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Only 50%?

I'm expecting the 'executive flats' around here to lose more like 85% by the bottom of the crash (300k-ish to 50k-ish).

I really cannot see how the flats in places like Leeds won't fall 85% simply because when demand disappears it will totally and utterly disappear.

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mmm yes affordable housing and it'll all soon be much more affordable

:)

There's no such thing as 'over supply', just overpriced rubbish. Watch these 'bespoke, executive' apartments becoming the social housing of the future.

Edited by FollowTheBear

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There's no such thing as 'over supply', just overpriced rubbish. Watch these 'bespoke, executive' apartments becoming the social housing of the future.

Quite correct. There is a need for the housing - just not at that price.

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There's no such thing as 'over supply', just overpriced rubbish. Watch these 'bespoke, executive' apartments becoming the social housing of the future.

One of the less tragic stories from the last crash was the two blocks of identical "executive Docklands apartments". The first one just managed to sell out at the top of the market, but the second one was finished a year later by which time there were real problems selling them, so the developers sold the lot to Tower Hamlets council as social housing. The local papers were full of outraged complaints from idiots who had bought in the first block only to have a bunch of bed and breakfast homeless accomodated bang next door...

Edited by Magpie

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One of the less tragic stories from the last crash was the two blocks of identical "executive Docklands apartments". The first one just managed to sell out at the top of the market, but the second one was finished a year later by which time there were real problems selling them, so the developers sold the lot to Tower Hamlets council as social housing. The local papers were full of outraged complaints from idiots who had bought in the first block only to have a bunch of bed and breakfast homeless accomodated bang next door...

Arf ARf Arf!!! Reminds me of the story of when they auctioned off Jackie Kennedy's stuff at Sotheby's in New York c 2000[?] - There were piles of morons there trying to show off how rich they were - and things like dustbins were going for $1,000's....: Then an ashtray came up - and it went for something like $15k....: THEN - another one - just like the last one - came up a bit later in the auction when people were tired/had left becasue so bored..... - AND - it went for $15!!! AARRRGHH!!!!!!1!

Edited by eric pebble

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Guest Time 2 raise Interest Rates

Your Money C4 page 532 6-9

View on buy-to-let flats from Ray Bouler, of Mortgage Advisers John Charcol

"I wouldn't say don't buy flats- but make sure you buy them at a good price

don't pay the asking prices" :unsure: No sh*t.

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Your Money C4 page 532 6-9

View on buy-to-let flats from Ray Bouler, of Mortgage Advisers John Charcol

"I wouldn't say don't buy flats- but make sure you buy them at a good price

don't pay the asking prices" :unsure: No sh*t.

Say's it all do't it!!!?!!!

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Check this site out if you want to see the hideous oversupply problems in the London commuter belt:

http://www.findaproperty.com/

893 for sale in Walton and 294 BTLs available--just on Walton!

Weybridge & Walton Property Edition

You searched for a house for sale in All areas

1863 matching properties were found.

1863!!!!!!!!!!!!!!!!!!!!!!!!

Edited by Realistbear

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Any one with half a brain can walk around Manchester and see over supply. Except developers apparently.

Yup. Went out in Manchester for XMAS DO on friday. (We were the ones in the furry Rudolph hats). Stood beside the 'biggie' at GMEX. Blimey it's big. You wouldn't get me inside that for love nor money. Especially money.

:lol:

mmm yes affordable housing and it'll all soon be much more affordable

:)

CONSPIRACY ALERT - Maybe this was New Labour's secret housing provision plan all along?????

"This is not the end. It is not even the beginning of the end. But it is, perhaps,

the end of the beginning." Winston Spencer Churchill

Winston Churchill was a great man. Nothing like a bit of UKTV History on a night...

:)

Edited by megaflop

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Don't talk to me of British Naval Traditions. They're nothing more than Rum, Sodomy and the Lash.

Winston Churchill

With due respect to The Pogues. :D

Edited by BandWagon

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Only 50%?

I'm expecting the 'executive flats' around here to lose more like 85% by the bottom of the crash (300k-ish to 50k-ish): there are far, far too many and they're far too crappy to justify a price higher than that for any self-respecting owner. Add a few neighbouring BTLs renting them out to housing benefit chavs, and you'll have plenty of time to regret paying more than 50k to buy one.

Reckon it won't be quite that awful. Think a £180k (at the top) 2 bed yuppy flat is probably now worth £150k. Leeds has 4500 more in production and the same amount with planning permission. Give it a year the same flat will be worth £120k. At this point do you sell for say £115k taking a hit for 65k plus costs or do you say I have a £145k mortgage which is costing me £8k a year and in 5 years time the market will "probably" have recovered to my original mortgage level. I may get say £400pcm for the flat (£1000 now) for half the time so only really losing £5k pa!!

Total cost in real money in 2011 after a £145k sale - £35k deposit and costs £1.5K

£30k (6 years of annual £5k loss on mortgage)

£1k Sale costs

Total approx loss £67k.

Although there is only a nominal capital loss of approx 30% there is a real cash loss of nearly double that.

50% loss quickly for the easily-panicked and the same but much more slowly for the over-confident.

Easy come easy go.

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Your average first time buy is now in their 30s? I really don't understand the logic with this massive surge of flats on the market. Most first time buyers are now in their 30s? At that age the last thing I would want to buy is a flat, I can't raise a family in a flat.

Around here (manchester, didsbury way) there are a fair few flats, some I have seen at the bargain price of £250k, who in their right mind would buy a 2 bedroom hole for that much money?

A bunch of new flats accross the road have just been built. I currently rent a 2 bed mid-terrace for £625 a month, it has a cellar too :) They want £850 a month for the flats opposite! Can you guess how many are currently being rented? Yup, none!

The house I am in now went for £160k a year ago. I remember when i first came to see it the agency guy said the rent doesnt cover their mortgage, my response was along the lines of "thats their problem", as if I was going to be sympathetic.

A house up the road (same street) has been asking £185k, guess how long thats been on the market? 14 months! haha! What is it with people expecting that houses have to make them a 20% profit! its sickening! Whats scary is people havnt seen sense, they havnt realised houses are still overpriced, it seems that they can just no longer afford to buy. Its a crazy market!

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A bunch of new flats accross the road have just been built. I currently rent a 2 bed mid-terrace for £625 a month, it has a cellar too :) They want £850 a month for the flats opposite! Can you guess how many are currently being rented? Yup, none!

A house up the road (same street) has been asking £185k, guess how long thats been on the market? 14 months! haha! What is it with people expecting that houses have to make them a 20% profit! its sickening! Whats scary is people havnt seen sense, they havnt realised houses are still overpriced, it seems that they can just no longer afford to buy. Its a crazy market!

This is the picture all over the UK -- it's just that the VI's aren't reporting this....

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Think a £180k (at the top) 2 bed yuppy flat is probably now worth £150k. Leeds has 4500 more in production and the same amount with planning permission. Give it a year the same flat will be worth £120k.

Why would someone pay 120k for a two-bed flat? To do that at a rational salary multiplier you'd need to be earning 40k: how many people on nearly twice the national average wage want to live in a flat?

I could perhaps see that in Central London where it avoids a lot of commuting costs, but in the country in general that's far less of an issue.

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  • 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%



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