Friday, July 30, 2010

No more rabbit hutch apartments

Shift to Houses From Flats Helps U.K. Homebuilders Overcome Weaker Market

U.K. homebuilders reacted to the financial crisis by switching from apartments to single-family homes. The move away from apartments, combined with a 60 percent drop in land prices, may lift operating profit margins in the industry. “Houses don’t lock up as much capital as apartments, as you can build them in phases so it doesn’t tie up as much work in progress.” New houses tend to fetch higher prices than secondhand ones, while that’s no longer the case for apartments. A decade ago, the premium for new apartments was 55 percent. It remains at about 15 percent for new houses. "Houses are cheaper to build as you need less steel frames and things, and it’s less problematic," said an analyst at Panmure Gordon. "More importantly, people want to live in houses and not flats."

Posted by drewster @ 01:13 PM (2095 views)
Please complete the required fields.



12 thoughts on “No more rabbit hutch apartments

  • mark wadsworth says:

    “A 60 per cent drop in land values”???

    Nope. There was a 60 drop in selling prices, which were stupendously inflated by the credit bubble and so on. Actual land rental values are much more stable. So let’s tax the rental values and keep selling prices low and stable (i.e. plus minus nothing).

    Reply
    Please complete the required fields.



  • lets hope land values and house prices keep dropping, it is near impossible to obtain financing for land at moment, as it has no real value, would also like to see more fields with houses with bigger plots built on, there is a huge waste of land with farmers sitting on it reaping subsidies for doing nothing much like the rest of the country not working and living on benefits, reward those who don’t work.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    @ Mark, I had to take the train from London to Exeter yesterday, and it appears to me that most land is just used for growing grass. Sure, cows and sheep eat grass and they give us milk and wool and they are tasty to eat, but no wonder this country is in a mess economically if eighty or ninety per cent of land is used for growing grass.

    Reply
    Please complete the required fields.



  • MarkW @3, at times you produce the silliest comments when you are not thinking straight, what about crops other than grass, Britain is great for growing taters, oil seed rape, maize, barley, wheat, sugar beet, swedes, carrots etc. Now I think about it the rest of the country would be much better off if London and all it’s financial parasites was erased from it!

    Reply
    Please complete the required fields.



  • actually enuii farmers are paid to leave land fallow for many many years, there are fields near me which have never had crops or animals, the grass is cut once a year and left to rot, what use is that land for the good of the people?

    give all the locals an acre each build a house and grow your own veg the whole country would be so much better off.

    Reply
    Please complete the required fields.



  • Housing is a moral issue. The artificial land shortage is immoral. As Mr Wadsworth points out, most of the UK is under-used subsidised agricultural land. Less than 1% of it, would be enough to house everyone who currently needs a home. 2% would be enough for the rest of the century (2010 figures). The shortage of land for housing; the high levels of unaffordable housing and the overvalued land is all predicated on this artificial shortage. It is immoral and in plain sight to anyone who wants to see.

    Reply
    Please complete the required fields.



  • landofconfusion says:

    5. mark said…

    actually enuii farmers are paid to leave land fallow for many many years

    So why not tax the underlying value of the land and in the case of allowing the fields to go fallow, tax those fields less? This would discourage speculation while rewarding farmers for helping the evironment.

    I never understand why we tax people and then give it back in the form of credits et al. So inefficent.

    RC: is assets

    Reply
    Please complete the required fields.



  • Round my way the fields are bought up by stupid middle aged women to put their pet horses on, europeans are more sensible in this respect where they eat the useless things.

    Reply
    Please complete the required fields.



  • Thats the horses not the middle aged women if you are confused.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    enui 4, I was not making a “silly comment” I was saying what I see when I look out of the train window. Maybe one field in ten or twenty is used for stuff other than grass.

    Reply
    Please complete the required fields.



  • I would like house prices to come down, but going on to green land is not necessary.
    There’s plenty of waste land out there even in the expensive areas.
    There should be more compulsory buy back of these areas if not used…

    Also you can’t resolve the housing problem by always just building more houses… That will just always move the problem further down the road.

    It will be a sad day when you go to go to work, and no matter which direction you look out the window you just see buildings.
    That’s what living in the US is like from what I’ve seen.

    Reply
    Please complete the required fields.



  • Sally Bernard says:

    I agree that city centre apartments have become less and less affordable, me and my husband wanted to to downsize to one such apartment but in the end it wasn’t the best option for us. In the end we decided upon on newly renovated luxury apartment, situated within an old Edwardian building in East Lancashire. The place is beautiful and surrounded but rolling hills and greenery. Such buildings seem to present a very sound investment in these difficult times, the apartments are very popular with couples like ourselves who are retired. We moved here to downsize from our previous home, however another couple use their apartment purely as a second home.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>