Friday, December 14, 2007

No mention of this by Kirsty on BBC Q time last night

Glut of new flats leaves regional markets on verge of collapse

The filling of city centres with “Identikit” apartments has left the price of such developments in danger of collapse. Housebuilding analysts are giving warning of price falls next year in some regional cities, saying that declines might be followed by years of stagnation.

Posted by jack c @ 10:08 AM (767 views)
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9 thoughts on “No mention of this by Kirsty on BBC Q time last night

  • planning4acrash says:

    Well, this is afterall the aim of the new developments. The government wanted more affordable housing, here it is! Hopefully, as a result, many of our Victorian houses will be converted from flats to become family houses again. Now that would be a positive outcome!

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  • I may be a bit of a bull when it comes to houses in nice areas but small flat developments in so so locations I have always said were ripe for a big fall…..

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  • The price of these rabbit hutches has been crashing for some time and many have been auctioned off in fire sales. How is this weighted in the mortgage lenders’ figures that show average house prices barely falling?

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  • Maddison – good point, I’m also of the opinion that certain sectors of the UK property market whilst not immune to falling prices will hold up better than others eg houses in desirable areas, whilst the identikit flats will bear the brunt of the price falls. Interesting to see how it all eventually pans out.

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  • Depends on the nature of the crash. Remember, many people have gone into (amater) BTL to secure a pension. Many will have mortgaged their nice house in a nice area to secure a BTL and when the BTL is repossessed the lender will be chasing the owner for the debt, so there could be secondary forced sales of nice houses in nice areas….And many people have to buy not such a nice house to get on the property market in the first place. They then can get into the nicer area when they sell their first house (next rung on the ladder). But if you cannot sell the first rung, you will not get onto the second rung. So I would not be surprised if even nice houses in desirable areas get a big hit in the crash as well….

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  • ” houses in desirable areas”

    No. It is the WHOLE market from top to bottom that is over inflated. Falls should occur across the whole spectrum of housing.

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  • i read “A thousand flats lie empty in Leeds and, in some cases, are being sold for £100,000 less than what was paid for them.” BTL get poor quick scemes …

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  • ““If flipping works, you can get huge returns, but you need a liquid secondary market to sell into, and this is where it is coming unstuck. There’s a lot of similarity with the condominium market in Florida, which has collapsed. There are a lot of mini-Floridas around the UK.” As the tide goes out you reveal all the car wrecks that were under the surface.

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  • it_is_going_with_a_bang says:

    “planning4acrash”

    Unfortunately quite a few of those nice looking Victorian Homes were bulldozed to make Retirement Flats.
    That a phrased used for a block of 10 flats in place of 1 Victorian House. Flats so small you couldnt swing a cat in them
    Indeed being old and unable to move around too much is ideal since there is nowhere to move to.

    I sold my 1 bed flat for £125,000 in August. More importantly I sold it to the Financial Advisor in the estate agent. I know he was buying it with a 100% mortgage – LOL. He thought he was expanding his portfolio. LOL.

    The flat rents for £475 a month. The management fees from the freeholder usually comes in at £160 a month.
    So that leaves him £315 a month to pay a £125k mortgage. GREAT investment if you ask me.

    So where exactly is he going to get his profit now …….

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