Jump to content
House Price Crash Forum
Sign in to follow this  
King Stromba

Why Do They Continue To Build?

Recommended Posts

In Uttoxeter we have just had loads of 2 bed houses and new build flats go up. The flats are mostly empty, and i know for a fact that none of the houses have yet sold (6 out of 32 have been reserved after a good 3 months of promoting them). Its plainly clear to all the locals that they arnt selling in this economic climate. So why do the planners continue to level land to build more? Another new block of flats opposite Tesco is going up. Do the planners have their heads in the sand, or is there a reason they keep building when things dont sell?

Am i missing something?

Share this post


Link to post
Share on other sites
In Uttoxeter we have just had loads of 2 bed houses and new build flats go up. The flats are mostly empty, and i know for a fact that none of the houses have yet sold (6 out of 32 have been reserved after a good 3 months of promoting them). Its plainly clear to all the locals that they arnt selling in this economic climate. So why do the planners continue to level land to build more? Another new block of flats opposite Tesco is going up. Do the planners have their heads in the sand, or is there a reason they keep building when things dont sell?

Am i missing something?

These guys are construction companies. The only thing they can do is build. If they have difficulty selling, they'll just price the next lot of flats lower, or better still sell them on in bulk to a major buy-to-let company or housing association at a hefty discount. Their margins might take a hit, but it's better than going out of business.

HPC'ers should be supporting this sort of building wholeheartedly - once there are more properties than buyers, the prices will start tumbling (as in Spain). ;)

Share this post


Link to post
Share on other sites

Also, the process of obtaining planning permission, building, fitting out and marketing takes at least 2-3 years in most cases. These new blocks probably first went up on the drawing board in '04 or '05, when flats were shifting a lot faster than they are now.

Share this post


Link to post
Share on other sites

They can probably knock 75% off the price of their new-build flats and still make a profit, so why not keep pumping them out? It's the BTLs who'll be trying to sell their old flats for much higher prices than the new ones who should be worrying.

Share this post


Link to post
Share on other sites

In a way its kind of ironic that they pick a town like uttoxeter to buid one bed flats and two bed houses. If you look at Uttoxeter its a commuter town over run by families. Just who they expect to buy these flats i dont know. Like everywhere else there is a shortage of good quality housing. 50% of the houses are new shit-pack-em-in houses. It would be better to improve the ones we have or build more family houses from brick rather than paper.

Edited by King Stromba

Share this post


Link to post
Share on other sites
In a way its kind of ironic that they pick a town like uttoxeter to buid one bed flats and two bed houses. If you look at Uttoxeter its a commuter town over run by families. Just who they expect to buy these flats i dont know. Like everywhere else there is a shortage of good quality housing. 50% of the houses are new shit-pack-em-in houses. It would be better to improve the ones we have or build more family houses from brick rather than paper.

After the Gold Rush these will be the new Ghost Towns. The good news when they are auctioned off at rock bottom prices they will drag the rest of the market down. The tipping point is over "The Miss The Boat" saga is over The Boat Is Sinking, man the lifeboats. The round the table conversation is "I have had my property on the market for 6 months with only 2 viewings".

Edited by joey

Share this post


Link to post
Share on other sites
In a way its kind of ironic that they pick a town like uttoxeter to buid one bed flats and two bed houses. If you look at Uttoxeter its a commuter town over run by families. Just who they expect to buy these flats i dont know. Like everywhere else there is a shortage of good quality housing. 50% of the houses are new shit-pack-em-in houses. It would be better to improve the ones we have or build more family houses from brick rather than paper.

developers will tell you they're hampered and under pressure to build as many units in as small a space as possible as quickly as they can. It's nonsense it's all about bottom line. Fascinating to watch that space, there is an over supply problem of these boxes, how it shakes out is anyone's guess. My bemusement is when I see a development dislocated from any other communications or 'life' - other than a major a road or motorway., I could not live like that and doubt if the ad mens 'urbanites' really want it either, one thing's for sure, most of them can't afford it. <_<

Share this post


Link to post
Share on other sites
Guest casaloco

The irony here is that there are still hundreds of flats in every town currently under construction which have been bought, off-the-plan by BTLers and which have still to reach the rental market.

The rental market is already awash hundreds if not thousands of BTL properties in each and every town, and there is still this lag... this road-train, of new builds about to hit the market.

Even if no new sites broke ground, in an already swamped market, the capacity already in the pipeline will leave tenants being able to pick from hundreds of properties and able to negotiate their own rents.

Share this post


Link to post
Share on other sites

Profit. If they didn't buy the land then another developer would.

They don't need to sell them all immediately to break even.

Share this post


Link to post
Share on other sites
Profit. If they didn't buy the land then another developer would.

They don't need to sell them all immediately to break even.

At a price enworb.

A friends parents in Maidenhead sold up a det property very close to the town center about 20 years ago. I recall at the time thinking, that is prime location. It has decayed for those 20 years and more around it has been purchased and laid to waste. Over the years I have watched what is occuring in the area and it is obvious that the big guys can afford to sit on land and even trash a town to get what they require.

It kind of backfired in the end because no one wants to live in Maidenhead anymore. The smart money moved over to Bourne End and Marlow.

Share this post


Link to post
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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.