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Wayward

Housing Associations buy up discounted homes from builders

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This is from January but I haven't seen this posted before.  Interesting insight into the new build market despite HTB.

https://www.insidehousing.co.uk/news/news/housing-associations-buy-up-discounted-homes-from-builders-amid-brexit-uncertainty-59683

Extracts....

"Housing associations are buying up new build homes from private builders at discounted rates, as they look to offload stock amid Brexit uncertainty in the housing market."

"Another housing association development director, who preferred not to be named, said the association had been “filling its boots” on deals at reductions of 15%, and had already agreed a number of deals with builders, including a full block in the South East"

...interesting because we have been here before....a further extract...

"Following the financial crash in 2008, there was a mass sale of properties by developers to housing associations at as much as 30% below market price as the market fell."

 

 

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14 minutes ago, Wayward said:

 

This is from January but I haven't seen this posted before.  Interesting insight into the new build market despite HTB.

https://www.insidehousing.co.uk/news/news/housing-associations-buy-up-discounted-homes-from-builders-amid-brexit-uncertainty-59683

Extracts....

"Housing associations are buying up new build homes from private builders at discounted rates, as they look to offload stock amid Brexit uncertainty in the housing market."

"Another housing association development director, who preferred not to be named, said the association had been “filling its boots” on deals at reductions of 15%, and had already agreed a number of deals with builders, including a full block in the South East"

...interesting because we have been here before....a further extract...

"Following the financial crash in 2008, there was a mass sale of properties by developers to housing associations at as much as 30% below market price as the market fell."

 

 

and if they could flog those to regular punters they would...they don't do anyone any favours

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I have posted about this before. The reductions aren't significant and certainly aren't when taken in the context that some HAs build their own houses and have lower profit margins than a number of the big builders (even when taking into account the 'reductions'). 

As HAs are government money I wouldn't be surprised if this is all orchestrated to prevent/slow-down the crash and prop up the builders. As if HTB wasn't enough

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Housing Association buying from builders is not anything new. 

For example, a new housing development gets approval. Council will insist on % of 'affordable' homes.

As you don't get much in the affordable bracket (even up North) this invariably means the developer will stick a small three storey block of 1/2 bed flats in amongst his plans to cover this requirement.

This will attract the attention of HAs who are always short of property and have waiting lists a mile long. They might offer to take some or all of  the flats off the builders hands. If they are slow sellers the builder will go for that as it helps his cash flow.

I would expect the HAs in these cases to negotiate a discount anyway, especially if the deal is 'off plan'. So it's not really news.

Like Killian said some HAs do build their own, although it used to be most of them. Its nowhere near as usual these days.

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The flat I was renting between 2010 and 2015 was owned by a housing association at a private development built in the late 1980s. It was one of 18 flats (in 3 blocks of 6 along one side). I guess this is when the recession started to bite, buyers dried up and rather than build their own, the HA decided to buy some from the developer.

My place was still let on an AST basis (and then a rolling monthly basis) and I paid a deposit. Rent was a bit cheaper than going with a regular private landlord. Ironically, this was the only occasion where I rented privately and the rent had increased annually. :rolleyes: But it was still good value. The 2 other private landlords I rented with never increased the rent.

The leases of the flats must have cost the HA around £20-30k each back then. If they wanted to sell them tomorrow then they would make a killing.

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20 minutes ago, MattW said:

The flat I was renting between 2010 and 2015 was owned by a housing association at a private development built in the late 1980s. It was one of 18 flats (in 3 blocks of 6 along one side). I guess this is when the recession started to bite, buyers dried up and rather than build their own, the HA decided to buy some from the developer.

My place was still let on an AST basis (and then a rolling monthly basis) and I paid a deposit. Rent was a bit cheaper than going with a regular private landlord. Ironically, this was the only occasion where I rented privately and the rent had increased annually. :rolleyes: But it was still good value. The 2 other private landlords I rented with never increased the rent.

The leases of the flats must have cost the HA around £20-30k each back then. If they wanted to sell them tomorrow then they would make a killing. 

"The leases of the flats must have cost the HA around £20-30k each back then. If they wanted to sell them tomorrow then they would make a killing. "

but a housing assocition with no properties would find itself wound up.....and dissolved...its not there to make money from speculating in property.....i'm glad you mentioned leases....its about time we stopped talking about leaseholds as ownership....no freehold no ownership

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If more social housing is needed:

Plan a - government builds houses

B - force private companies to have a higher percentage of housing association on their developments

C - buy private properties at 'discounted' rates

The fact they are pursuing c demonstrates incompetence and/or corruption

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On 17/04/2019 at 01:31, Killian said:

If more social housing is needed:

Plan a - government builds houses

B - force private companies to have a higher percentage of housing association on their developments

C - buy private properties at 'discounted' rates

The fact they are pursuing c demonstrates incompetence and/or corruption

Fed up of the corruption normal people need to get even with these money people up the top I don't mean middle class I mean higher than that but no violence 

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On 16/04/2019 at 21:54, Spindler said:

.i'm glad you mentioned leases....its about time we stopped talking about leaseholds as ownership....no freehold no ownership

Long leasehold with only nominal ground rent to pay is ownership of an asset. 

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  • 297 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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