Sunday, September 4, 2011

Banking crisis hits the South West

Second-home owners forced to cut prices

Opps. Bankers bonuses are not as generous, and with pressure on banking staff the amount of money to shaft the locals in the SW is decreasing. "Price reductions are becoming an increasingly common occurrence in the popular second-home market of the South West, as sellers find themselves forced to cut asking prices to achieve a sale, according to property agents. New figures from Savills, the property agent, reveal that 75 per cent of the properties on its books in Devon have had their prices cut at least once this year, with the average reduction being 15 per cent."

Posted by dude @ 04:07 PM (2069 views)
Please complete the required fields.



7 thoughts on “Banking crisis hits the South West

  • Well spotted Dude.

    I live in Exeter, the property crash denial capital of the UK, having made several offers myself on properties of around 15-20% below asking price, I have repeatedly been shown the door, accompanied by comments like ” what do you mean, we are in a housing correction?”

    Bring it on.

    Reply
    Please complete the required fields.



  • Or the “I’m not giving it away!”

    Reply
    Please complete the required fields.



  • I live in the South Hams and there has been and continues to be quite a lot of local hostility to second home owners, with the district council recently voting to lobby the government to change the system which allows the second home owners to claim a 10 per cent council tax discount.
    In the South Hams district council area, which includes such hot spots as Dartmouth and Salcombe, there were more than 4,000 second home owners claiming this discount in this financial year, representing a loss in council tax of more than £700,000. At a time when many local families are struggling to make ends meet and the social housing waiting list appears to be getting longer, with few if any social homes being built, and the housing rental market reflecting London prices while residents in the main earn countryside wages, the council’s vote, called for by the Lib-Dems but supported by all but one of the Tories, came as no surprise.
    On top of the number of second homes, you could also add a substantial number of properties which are now holiday lets, registered for business rates, rather than council tax.

    Some streets in Dartmouth are very much deserted outside the holiday periods, with just a few locals living perhaps a street on more than 100 homes. Salcombe is worse and some of the villages worse again. East Portlemouth, where Sunday Times editor John Witherow, Kate Bush and sports presenter Steve Rider all have second homes, is a case in point.

    In East Portlemouth, a local benefactor offer to build homes to rent for local people. The plan was objected to the second home owners, among them Steve Rider, who denied trying to drive out locals but insisted second-home owners were a crucial part of the local economy. What perhaps he doesn’t realise is that full-time residents are an even more crucial part of the economy – they spend more locally and contribute more overall, even if they are on poor rural wages in the main.

    http://www.dailymail.co.uk/tvshowbiz/article-1160876/Football-presenter-Steve-Rider-scores-big-goal-objecting-homes-poor-holiday-home.html#ixzz1X0mYQrix

    Property Snake gives an indication that prices are falling in this area, which would seem to support the FT’s view:

    http://www.propertysnake.co.uk/site/postcode/tq7

    Reply
    Please complete the required fields.



  • I would much rather release second homes and empty properties into the mix before creating loads of new rural villages. Far from getting a 10% discount they should be saddled with a 100% surcharge if occupancy falls below 40 weeks per week.

    Reply
    Please complete the required fields.



  • The usual ‘falling prices are bad’ reporting, whereas it’s actually good news that second home owners are selling up and releasing some housing stock. Annoying that so many people who bought pre 2004 or have inherited spare homes are still trying to get top dollar.
    If the govt were serious about solving the housing shortage they would adopt some policies that would encourage second home owners to sell, but at the moment they are doing the opposite.

    Reply
    Please complete the required fields.



  • Finally a bit of good news for the people down in the SW, the most outrageously unaffordable part of the country, which ironically is also the least densely populated. I usually suggest LVT as the solution, but down there, the simple answer “Allow more houses to be built” would probably sort it out.

    Reply
    Please complete the required fields.



  • One for all, and all for one.

    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>