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Builders will not slash house prices, Vistry (Bovis) boss insists


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Hi

 

We'll see...

https://www.telegraph.co.uk/business/2020/05/22/builders-will-not-slash-house-prices-vistry-boss-insists/

Greg Fitzgerald says the builder formerly known as Bovis 'will continue to hold the line with prices'

Housebuilders will not slash prices simply to boost sales in the wake of the coronavirus crisis, the boss of one of Britain’s biggest developers has said. The market will be propped up by the Government's Help to Buy subsidy scheme and ultra-low interest rates, according to Greg Fitzgerald of Vistry Group, formerly known as Bovis – meaning predictions of a price slump as high as 30pc are wide of the mark. Mr Fitzgerald said that builders have learned the lessons of the 2008 financial crash, when prices fell by more than a fifth in 16 months, and are now far more financially secure – meaning they will not have to offer steep discounts in order to bring in cash and survive.

Instead of budging on price, he would rather sell far fewer properties than normal. He said: “Builders didn't have great balance sheets [in the financial crisis] and the banks were not as supportive as they have been today, so housebuilders were probably the ones who led the charge. “We have good balance sheets, we have the support of Government and the banks. I would rather sell at between a half and a third of the normal rate of sales and get the prices, rather than sell at the rate I’d like to sell at and have prices fall by 20pc – and I think all housebuilders will do that.

“We are not going to chase the market down from a pricing perspective. “It seems an incredible thing to say, but I can see house prices, particularly new ones, not moving much at all – and that's massively helped by Help to Buy.”

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Evidently all pretence that HTB was to help buyers has been abandoned and the reality that it was a cynical scheme to inflate prices and boost house builder profits is being openly admitted by shameless and seemingly untouchable house builder bosses.

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3 minutes ago, Wayward said:

Evidently all pretence that HTB was to help buyers has been abandoned and the reality that it was a cynical scheme to inflate prices and boost house builder profits is being openly admitted by shameless and seemingly untouchable house builder bosses.

Didn't people get that after the £110m bonus?

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Could be right.

The only folk silly enough to buy new build houses will be HTB buyers with no deposit money.

Deposits will rise for second hand stock as LTVs fall.

Only the least credit worthy will choose HTB and the seeds for a very nasty HTB scandal will be well and truly sown for when inflation and higher rates finally return.

HTB will be the radio rentals of the housing market.

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Just now, Drifty said:

More redundancies and bankrupt builders then to fuel the recession.

If nothing sells then everything stays at asking price ?

Sometimes a property is more valuable sitting on a balance sheet.

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3 minutes ago, Fromage Frais said:

If nothing sells then everything stays at asking price ?

Sometimes a property is more valuable sitting on a balance sheet.

They could always destroy the houses like Cartier watches ?

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4 minutes ago, Fromage Frais said:

If nothing sells then everything stays at asking price ?

Sometimes a property is more valuable sitting on a balance sheet.

Friend who works for one of the major builders has already had his salary cut 30%.

They are in this for the long(ish) hall

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2 minutes ago, captainb said:

Friend who works for one of the major builders has already had his salary cut 30%.

They are in this for the long(ish) hall

Since they have their mouth firmly on the government tit they should be safer than a lot of folk.

Thats the bosses that is as if they wont discount then they will just screw all the other buggers until they can survive on HTB mugs only.

HTB is the new build market now what a fiasco

Edited by Fromage Frais
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1 hour ago, dryrot said:

Hi

 

We'll see...

https://www.telegraph.co.uk/business/2020/05/22/builders-will-not-slash-house-prices-vistry-boss-insists/

Greg Fitzgerald says the builder formerly known as Bovis 'will continue to hold the line with prices'

Housebuilders will not slash prices simply to boost sales in the wake of the coronavirus crisis, the boss of one of Britain’s biggest developers has said. The market will be propped up by the Government's Help to Buy subsidy scheme and ultra-low interest rates, according to Greg Fitzgerald of Vistry Group, formerly known as Bovis – meaning predictions of a price slump as high as 30pc are wide of the mark. Mr Fitzgerald said that builders have learned the lessons of the 2008 financial crash, when prices fell by more than a fifth in 16 months, and are now far more financially secure – meaning they will not have to offer steep discounts in order to bring in cash and survive.

Instead of budging on price, he would rather sell far fewer properties than normal. He said: “Builders didn't have great balance sheets [in the financial crisis] and the banks were not as supportive as they have been today, so housebuilders were probably the ones who led the charge. “We have good balance sheets, we have the support of Government and the banks. I would rather sell at between a half and a third of the normal rate of sales and get the prices, rather than sell at the rate I’d like to sell at and have prices fall by 20pc – and I think all housebuilders will do that.

“We are not going to chase the market down from a pricing perspective. “It seems an incredible thing to say, but I can see house prices, particularly new ones, not moving much at all – and that's massively helped by Help to Buy.”

National builder ('Developer'!) in our small market town has smelt the coffee, and reduced their prices by £20k, but still way beyond the reach of local wages!

£20k is just the beginning, reductions will have to continue if they hope to sell anything.

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I bet this is all directorspeak.

What if they held the previous prices but increased the value of comps thrown in? It's the same effect but comps are invisible on the LR figures.

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If older properties fall in value how will they hold the prices of their cheap tacky smaller new builds even with help to buy?

Opposite where I live they are finishing off converting an old job centre to 30 one bed flats with no individual outside space. Its taken 11 months and counting - and they still have to add on the penthouses on top. When you see how slow the process is you understand why we have a housing crisis - China would have got to the same stage in a couple of days!

One might suggest bringing back the old dole office might be more useful now than 30 one beds. Its selling point is ease of accessibility to the tube - which most people still aren't supposed to use.

Edited by MARTINX9
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1 hour ago, dryrot said:

https://www.telegraph.co.uk/business/2020/05/22/builders-will-not-slash-house-prices-vistry-boss-insists/

Greg Fitzgerald says the builder formerly known as Bovis 'will continue to hold the line with prices'

Housebuilders will not slash prices

 

 

“We are not going to chase the market down from a pricing perspective. “It seems an incredible thing to say, but I can see house prices, particularly new ones, not moving much at all – and that's massively helped by Help to Buy.”

Never believe anything till it's officially denied.

Edited by Killer Bunny
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Good don`t slash then. 

Your cardboard chitboxes will look even more overpriced compared to old stock. 

any land with planning permission will need to be built on within 12 months or confiscated back to the government council house land bank pile.  any land that could be used for house building must have planning submitted and built on in 2 years or confiscated for the CH land bank. 

all vote for LG in the local elections i`m going to become a MP and step on the big boys toes just for fun. 

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1 hour ago, captainb said:

Friend who works for one of the major builders has already had his salary cut 30%.

They are in this for the long(ish) hall

You'd never get a long hall in the usual shoebox modern British home.

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2 hours ago, Wayward said:

Evidently all pretence that HTB was to help buyers has been abandoned and the reality that it was a cynical scheme to inflate prices and boost house builder profits is being openly admitted by shameless and seemingly untouchable house builder bosses.

Indeed.

Well observed.

A disgrace.

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2 hours ago, Fromage Frais said:

Could be right.

The only folk silly enough to buy new build houses will be HTB buyers with no deposit money.

Deposits will rise for second hand stock as LTVs fall.

Only the least credit worthy will choose HTB and the seeds for a very nasty HTB scandal will be well and truly sown for when inflation and higher rates finally return.

HTB will be the radio rentals of the housing market.

HTB is a clusterfuk.

One. It only appeals to the potless.

Two. The social housing element turns the estate into instant problem zones.

Despite there being loads of non new houses for sale, the LA nodded a large new estate. 

Only been finished for 1 year and every idiot who bought is looking to  sell up due to the scum housed in the social bit.

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4 hours ago, dryrot said:

. “We have good balance sheets, we have the support of Government and the banks. I would rather sell at between a half and a third of the normal rate of sales and get the prices, rather than sell at the rate I’d like to sell at and have prices fall by 20pc – and I think all housebuilders will do that.

 

Bordering on price fixing cartel suggestions there....

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12 minutes ago, Si1 said:

Bordering on price fixing cartel suggestions there....

You mean major building firms control prices? control supply as well through slow release? and do not compete on price in nearby developments?The shock ? 

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  • 417 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% +
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      • Even
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      • up 5%



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