Jump to content
House Price Crash Forum

Red Door Venture / Newnham council


Recommended Posts

0
HOLA441

WHAT THE F***!!!!

 

https://mgov.newham.gov.uk/mgIssueHistoryHome.aspx?IId=85543&PlanId=613

"

Issue details

Loan of Funds to RDV for Acquisition – West London"

 

http://www.reddoorventures.co.uk/about-us/

 

"Red Door Ventures (RDV or Red Door) is a commercial residential developer established in 2014. It is wholly owned by the London Borough of Newham."

 

WHAT THE F***!!!!!

 

 

Link to comment
Share on other sites

1
HOLA442
2
HOLA443
1 minute ago, Slimline said:

Seriously count, your surprises by this ? :rolleyes:

Surprised no....Shocked yes.

 

These feckers (AFAICT) are developing houses and renting them out a whatever the insane market value is...probably them paying the rent with housing benefit....wonder how much the people working for the venture are getting paid !!!!

Link to comment
Share on other sites

3
HOLA444
4
HOLA445
5
HOLA446
6 hours ago, fru-gal said:

These companies are pretty normal now. Quite a few councils formed companies to bypass Right to Buy. The company is owned by Newham Council. Isn't it better that a council is building new homes than none at all (obviously it would be better if they were building not for sale social housing with no option for Right to Buy). Lots of these issues would go away if the current Government was interested in helping people by actually building new, genuinely affordable homes but since they are only interested in HPI and making their rich friends richer, I think this is the best councils can do at the moment.

If the problem is lack of housing.

Link to comment
Share on other sites

6
HOLA447
7
HOLA448
8
HOLA449
9
HOLA4410
3 hours ago, Locke said:

Do you think the price of housing, particularly in London, is influenced more by the demand for living space, or the availability of cheap credit?

Both need to run in parallel.  Without conditions of scarcity and competitive bidding there is no mechanism for inflation regardless of credit conditions.  The credit conditions are the same around the UK....if only credit drives inflation why such variance in HPI...?

Why would 5 people bid up the price of housing if 10 available...?  regardless of credit..?  If more supply than demand then sellers will be competing with each other to sell and the pressure is deflationary....regardless of credit availability.

Easy credit has driven prices to the stratosphere but this is only possible when coupled with scarcity and competitive bidding.

Link to comment
Share on other sites

10
HOLA4411
11
HOLA4412
30 minutes ago, Wayward said:

if only credit drives inflation why such variance in HPI

I did not say this.

3 hours ago, Locke said:

Do you think the price of housing, particularly in London, is influenced more by the demand for living space, or the availability of cheap credit?

The answer is sentiment. The exact same house close to a productive industry has a higher price than it would in the countryside. People with access to easy credit are bidding on housing in certain areas on the expectation that other people find value in them and will later bid more.

35 minutes ago, Wayward said:

The credit conditions are the same around the UK

Are they? Are banks as eager to lend in the North as they are in London? 

36 minutes ago, Wayward said:

If more supply than demand then sellers will be competing with each other to sell and the pressure is deflationary

Yes. Do you think demand for housing stock only comes from people who want to buy it as shelter, or also from people who want to use it as an investment asset? Which one do you think has driven house prices recently?

 

38 minutes ago, Wayward said:

Why would 5 people bid up the price of housing if 10 available...?

You are making the fundamental mistake of assuming that buyers are rational. Also, conditions in other regions such as China affect the system here.

 

Even though lots of housing stock is empty and people are much more spread out than they were 60 years ago, the prices have been rising. How do you explain this?

Link to comment
Share on other sites

12
HOLA4413
2 hours ago, Locke said:

I did not say this.

Did I say you did?

2 hours ago, Locke said:

The answer is sentiment. The exact same house close to a productive industry has a higher price than it would in the countryside. People with access to easy credit are bidding on housing in certain areas on the expectation that other people find value in them and will later bid more.

Well yes - more demand and bidding on houses where people want to live

2 hours ago, Locke said:

Are they? Are banks as eager to lend in the North as they are in London? 

I would expect banks to be more cautious lending in London given the unsustainable pricing and now the inevitable falling prices

2 hours ago, Locke said:

Yes. Do you think demand for housing stock only comes from people who want to buy it as shelter, or also from people who want to use it as an investment asset? Which one do you think has driven house prices recently?

BTLers are proxy buyers for occupational tenants.  In 10 houses and 5 occupants scenario the BTLers would run a mile.  BTL only exists because of the conditions of scarcity and guaranteed demand.

 

2 hours ago, Locke said:

You are making the fundamental mistake of assuming that buyers are rational. Also, conditions in other regions such as China affect the system here

Yes I think all the evidence supports the case that where there is excessive supply prices will fall (everything else being equal) because in scenario of excessive supply sellers bid the price down over time (might be slow process but inevitable nonetheless).  Chinese buyers only buy in the UK to invest because they know housing supply is scarce and tenants virtually guaranteed.  If only 5 potential occupational tenants for every 10 housing units the Chinese would be nowhere to be seen.

 

2 hours ago, Locke said:

Even though lots of housing stock is empty and people are much more spread out than they were 60 years ago, the prices have been rising. How do you explain this?

Empty housing stock is not supply.  Supply is housing on the market available to transact between willing seller and buyer.

Edited by Wayward
Link to comment
Share on other sites

13
HOLA4414
23 minutes ago, Wayward said:

Chinese buyers only buy in the UK to invest because they know housing supply is scarce and tenants virtually guaranteed.  If only 5 potential occupational tenants for every 10 housing units the Chinese would be nowhere to be seen.

Then why is so much stock sitting empty?

23 minutes ago, Wayward said:

Empty housing stock is not supply.  Supply is housing on the market available to transact between willing seller and buyer.

I don't know what to say to this. Are car manufacturers safe, because they are holding stock on parking lots? The housing exists.

Link to comment
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.




×
×
  • Create New...

Important Information