Wednesday, October 1, 2008

Barratt slashes prices 43%; car manufacturers go to three-day week

Banking crisis bites deeper in construction and manufacturing

Barratt Developments offered a 43% discount to buyers prepared to take five or more flats or houses off its hands in its Yorkshire East division. The six leading property agents in Leeds have between them sold just six new apartments in two months. "Prices of urban apartments appear to have fallen in many cases by 40 per cent to 50 per cent, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless." Further evidence of an overall slump in the economy came with the news that many car manufacturers have been forced to bring in three and four day weeks as the motor industry faces its worst crisis in 30 years.

Posted by drewster @ 01:07 AM (635 views)
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5 thoughts on “Barratt slashes prices 43%; car manufacturers go to three-day week

  • Repeat after me: House prices are underpinned by strong fundamentals and a shortage of supply. Interest rates, inflation and unemployment rates are low. The bank of england will cut interest rates by at least half a point by the end of the year.

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  • Not common knowledge yet but the giant Nissan plant (Europes most efficient) located in Washington/Sunderland Tyne & Wear is to move to a four day week. The significance of this is that they manufature the smaller Nissan models – the Spanish counterpart which produces the larger vehicles is at a stand still !

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  • This is very,very good news – regarding housing that is. Soon it’ll be ‘buy one get one free’ but then it almost is in this case. wonder what they’ll be offering next year? I mean : This is only the beginning ! People will surely not be tempted yet even if they are able, which by the way, most aren’t.

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  • Plato,

    It’s not that good really. New-build flats in northern cities (the article implies Leeds / Bradford / Sheffield) were always hopelessly overvalued. The ones I’ve seen work out at about 3x-4x more expensive per square foot than nearby terraced homes. The build quality is mixed, but some developments are just shockingly bad.

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  • Flats are relatively cheap to build, with much of the cost dependant on the standard of finish inside. The actual construction cost of a 2 bed flat can be less than £20k.

    Much depends on how much they paid for the land…

    Despite this appearing to be a bad news story for Barratt, it has actually buoyed their share price today.

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