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More new build misery (reported in BBC)

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https://www.bbc.co.uk/news/science-environment-45956792

"It must be miserable: you’ve saved for a newly-built home past the town’s ring-road, but now you're trapped too often in a metal box with wheels.

You spend hours in traffic ferrying yourself and your children around because your estate has no shops; no pub; no doctor; no school; no jobs.

A report says this is the buttock-numbing fate of numerous young couples."

 

Misery heaped upon misery....deliberately inflated price due to absurd UKGov interference, poor build quality, no parking, cramped and reported here (hardly a surprise) - poor town planning also.  Of course the architects, planners, developers behind these new housing schemes don't have to live in them so they don't care.

 

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MSE:
New House unfortunate issue
23rd Oct 18 at 10:22 PM
 
So i started looking at a new house on a new build housing estate. There were two that really interested me and would be suitable. We were told both would be marketed for the same price and neither had been released yet. So i finally made a choice and exchanged a month later. Then within a couple of weeks the other house was released but they released it £20k lower than what we were told it would be. Im not really happy about this as we were led to believe that this design of house would released for the same price. in fact today the rest of the surrounding same type of house have all be released for the lower price meaning im straight into 20k negative equity compared with the neighbours. House hasnt been built yet and we are looking at 6 months from here.

OK before people tell me its tough ive exchanged i understand i cant get out of the contract or not at least without loosing a lot more then the 20k negative equity.

Yes i also understand if the housing market slows then the builders can change the price to suit to keep sales going.

However my point here is i feel that ive been miss-sold, i was told that the properties would be marketed for the price i paid, the reality is this hasnt happened and the decision made to lower the price of the other houses was probably happening whilst i was in the process of exchanging.

If the house builder had listed at the same price and then reduced price because sales had stalled i would have understood and have no argument.

I have complained to the sales office who have forwarded it to head office. 
First response came back that they wouldnt do anything.
Not happy with this i replied and complained again classing the issue as being miss-sold.
A fairly quick response came back (same day) saying that they would throw in £4.5k of carpets in. Great but im still not happy and i feel that response was "offer this and see if he will go away".
As i see it i have several options from here
1) request addition ground works which i want doing (hardcore to an area of garden to create hard standing) as well as the carpets 
2) request a £10k rebate at time of moving in which splits the valuation difference 50-50
3) start the formal complaint process and request that the satisfactory out come would be a £20k rebate to bring our house into line with the neighbouring houses values. (the formal complaint process of course may not go my way)

I realise i dont have much of a leg to stand on but im interested as to what the suggested next steps should be.
 

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5 minutes ago, PeanutButter said:

However my point here is i feel that ive been miss-sold, i was told that the properties would be marketed for the price i paid, the reality is this hasnt happened and the decision made to lower the price of the other houses was probably happening whilst i was in the process of exchanging.

Do you have any e mails or written evidence to prove that?

Is the house exactly the same i.e. maybe it has a smaller garden, maybe it is overlooked, on a busier part of the site, does it have a less parking/garage.  You said that you opted to buy this house over another so presumably it has some features and advantages that the pother house does not?

 It may be that the developer is getting close to the quarterly  or yearly sales figures and wants to get sales in to hit target.  This is not unusual in the same way that if you are buying a car dealers offer better deal if they are behind target when they are close to reporting monthly or yearly figures.  

16 minutes ago, PeanutButter said:

2) request a £10k rebate at time of moving in which splits the valuation difference 50-50
3) start the formal complaint process and request that the satisfactory out come would be a £20k rebate to bring our house into line with the neighbouring houses values. (the formal complaint process of course may not go my way)

How long does the site have to go before it is sold out? Whilst I certainly see your point of view, but from the builders point of view what happens if the market crashes by 25%.  They will have set a precedent and anyone who bought on the site will go back asking for a refund.  

On a smaller level  I bought a suit last week for £250 which is now reduced to £199.   

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12 minutes ago, happyguy said:

Do you have any e mails or written evidence to prove that?

Is the house exactly the same i.e. maybe it has a smaller garden, maybe it is overlooked, on a busier part of the site, does it have a less parking/garage.  You said that you opted to buy this house over another so presumably it has some features and advantages that the pother house does not?

 It may be that the developer is getting close to the quarterly  or yearly sales figures and wants to get sales in to hit target.  This is not unusual in the same way that if you are buying a car dealers offer better deal if they are behind target when they are close to reporting monthly or yearly figures.  

How long does the site have to go before it is sold out? Whilst I certainly see your point of view, but from the builders point of view what happens if the market crashes by 25%.  They will have set a precedent and anyone who bought on the site will go back asking for a refund.  

On a smaller level  I bought a suit last week for £250 which is now reduced to £199.   

I think he's getting a dragging on MSE. 

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1 hour ago, Wayward said:

https://www.bbc.co.uk/news/science-environment-45956792

"It must be miserable: you’ve saved for a newly-built home past the town’s ring-road, but now you're trapped too often in a metal box with wheels.

You spend hours in traffic ferrying yourself and your children around because your estate has no shops; no pub; no doctor; no school; no jobs.

Isn't that how American residential zones are like?

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1 hour ago, PeanutButter said:
MSE:
New House unfortunate issue
23rd Oct 18 at 10:22 PM
 
So i started looking at a new house on a new build housing estate. There were two that really interested me and would be suitable. We were told both would be marketed for the same price and neither had been released yet. So i finally made a choice and exchanged a month later. Then within a couple of weeks the other house was released but they released it £20k lower than what we were told it would be. Im not really happy about this as we were led to believe that this design of house would released for the same price. in fact today the rest of the surrounding same type of house have all be released for the lower price meaning im straight into 20k negative equity compared with the neighbours. House hasnt been built yet and we are looking at 6 months from here.

OK before people tell me its tough ive exchanged i understand i cant get out of the contract or not at least without loosing a lot more then the 20k negative equity.

Yes i also understand if the housing market slows then the builders can change the price to suit to keep sales going.

However my point here is i feel that ive been miss-sold, i was told that the properties would be marketed for the price i paid, the reality is this hasnt happened and the decision made to lower the price of the other houses was probably happening whilst i was in the process of exchanging.

If the house builder had listed at the same price and then reduced price because sales had stalled i would have understood and have no argument.

I have complained to the sales office who have forwarded it to head office. 
First response came back that they wouldnt do anything.
Not happy with this i replied and complained again classing the issue as being miss-sold.
A fairly quick response came back (same day) saying that they would throw in £4.5k of carpets in. Great but im still not happy and i feel that response was "offer this and see if he will go away".
As i see it i have several options from here
1) request addition ground works which i want doing (hardcore to an area of garden to create hard standing) as well as the carpets 
2) request a £10k rebate at time of moving in which splits the valuation difference 50-50
3) start the formal complaint process and request that the satisfactory out come would be a £20k rebate to bring our house into line with the neighbouring houses values. (the formal complaint process of course may not go my way)

I realise i dont have much of a leg to stand on but im interested as to what the suggested next steps should be.
 

This is why I would not buy off plan, it seems very risky.  Has anyone had any good stories about doing so?

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That is what you get when buying into a Ponzi scheme. These schemes all rely on the greater fool theory. Unfortunately he is the last of the greater fools on that estate so it seems.

He shouldn't worry too much though. In 10 years time they'll all be in negative equity together.

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2 hours ago, Wayward said:

https://www.bbc.co.uk/news/science-environment-45956792

"It must be miserable: you’ve saved for a newly-built home past the town’s ring-road, but now you're trapped too often in a metal box with wheels.

You spend hours in traffic ferrying yourself and your children around because your estate has no shops; no pub; no doctor; no school; no jobs.

Doesn't quite add up with buying a newly-built home post GFC.

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2 hours ago, iamnumerate said:

Has anyone had any good stories about doing so?

Friend of mine bought a few places in Canary wharf off plan about 7years ago, saw massive you gains over the years. Luckily for him the timing was right. That's what makes the difference... Timing

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57 minutes ago, crazypabs said:

Friend of mine bought a few places in Canary wharf off plan about 7years ago, saw massive you gains over the years. Luckily for him the timing was right. That's what makes the difference... Timing

But did he make massive gains compared to someone buying a house or flat that was already built in the same area?  If we are thinking about whether off plan is a good idea or not.

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5 hours ago, PeanutButter said:
MSE:
New House unfortunate issue
23rd Oct 18 at 10:22 PM
 
So i started looking at a new house on a new build housing estate. There were two that really interested me and would be suitable. We were told both would be marketed for the same price and neither had been released yet. So i finally made a choice and exchanged a month later. Then within a couple of weeks the other house was released but they released it £20k lower than what we were told it would be. Im not really happy about this...

Did you see the recent thread about riots and sales offices being smashed up in China when they sell properties at a discount....all those that bought first at higher prices show their malcontent Chinese style and that doesn't involve letter writing.

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7 hours ago, happyguy said:

Do you have any e mails or written evidence to prove that?

Is the house exactly the same i.e. maybe it has a smaller garden, maybe it is overlooked, on a busier part of the site, does it have a less parking/garage.  You said that you opted to buy this house over another so presumably it has some features and advantages that the pother house does not?

 It may be that the developer is getting close to the quarterly  or yearly sales figures and wants to get sales in to hit target.  This is not unusual in the same way that if you are buying a car dealers offer better deal if they are behind target when they are close to reporting monthly or yearly figures.  

How long does the site have to go before it is sold out? Whilst I certainly see your point of view, but from the builders point of view what happens if the market crashes by 25%.  They will have set a precedent and anyone who bought on the site will go back asking for a refund.  

On a smaller level  I bought a suit last week for £250 which is now reduced to £199.   

Their main mistake was buying a new build.

There are many different tricks to shift the power away from the housebuilder. There are still things that the customer can do even following exchange.

It shouldn't matter though as he exchanged on the house he wanted at the price he was willing to pay at the time he wanted. Did he want them to hold the price on every house on the development, did other developers also assure him they wouldn't be dropping their price?

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The other side of coin.

He could have waited for the other development to be released, found it priced higher and the original property no longer available. 

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He's wanting a version of Bid TV (remember that), but for new builds, Everyone pays the lowest price. For just 300 Eazi-payments of £1500 (Interest rate permitting)

On 24/10/2018 at 13:43, happyguy said:

On a smaller level  I bought a suit last week for £250 which is now reduced to £199.   

Don't feel bad, The suit will probably be in better condition than the new build after a few years ;) 

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Re the MSE thread: when you buy any property, you pay what you feel the property is worth. It's irrelevant what similar / identical properties sold for previously or will sell for in the future.

If after you've completed on the sale, prices drop, it means you placed a higher value on the property than other people. Tough!

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I assume that his mortgage company can still pull out of the deal, saying that the house is now worth £20k+ less than previous valuation? Or at least reduce the amount they are willing to lend keeping a LTV at a specific percentage. 

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  • 143 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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