Barrat slashes flats by 43%

adr0ck

its a buy 5 get 43% off deal

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3111497/Financial-crisis-Banking-crisis-bites-deeper-in-construction-and-manufacturing.html

http://www.building.co.uk/story.asp?sectioncode=284&storycode=3123881&c=1

ginvzt

In other words - by 5, get 2 free.... It is [STRIKE]even better than[/STRIKE] not as good as "3 for 2", but not far off! So, how soon we will have "Buy 1 get 1 free"?

Mind you, if you bought 5 of those flats, you might be able to make 2 decent sized ones by knocking down the walls...

Edit: corrected the comparison as pointed out by other posters... Sorry!!!!

dopester

Great little report.

One important item caught my eye:

Alastair Stewart, an analyst with Dresdner Kleinwort, said: "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."

Land (and location) is so much of the premium paid for houses.

I've not yet been able to source the residential building land (plot) I want cheaply, but I've got funds to buy when the forced/distress sales come.

ad9898_3

ginvzt wrote: »

In other words - by 5, get 2 free.... It is even better than "3 for 2"! So, how soon we will have "Buy 1 get 1 free"?

Mind you, if you bought 5 of those flats, you might be able to make 2 decent sized ones by knocking down the walls...

I still don't think 'buy 5 get 2 free' is a good deal, I think a good deal will be when I find the deeds to these places when I next open my box of Shredded Wheat.:D

Realy

ad9898 wrote: »

I still don't think 'buy 5 get 2 free' is a good deal, I think a good deal will be when I find the deeds to these places when I next open my box of Shredded Wheat.:D

No you won't...........................................

Their will be no room for the Shredded Wheat.:D

Kez100

I said two days ago the new builds should be reduced overnight by 50% - get this drop over and done with and the nessage out there to the rest of the market that houses are vastly overpriced so why prolong the pain.

Never thought I would see it though...

Just need individual homes to be reduced by the same now. Are you listening Barratts?

adr0ck

Kez100 wrote: »

I said two days ago the new builds should be reduced overnight by 50% - get this drop over and done with and the nessage out there to the rest of the market that houses are vastly overpriced so why prolong the pain.

Never thought I would see it though...

Just need individual homes to be reduced by the same now. Are you listening Barratts?

this is a drop in prices of flats not houses

flats - enough said

neverdespairgirl

Not just flats:

Barratt Developments offered the discount to buyers prepared to take five or more flats or houses

Not that I want 5 houses or flats anyway.

howler_2

I believed prices would fall 50% but I never expected it so quickly - and still a long way to go in this crash

Thanks Barratt!!

teabelly

The fundamental problem with new builds is that they are often priced the same across the country which doesn't take into account regional variations in price. In London a one bed at 125k is cheap, in Stoke it is double what it should be. With building regs and labour costs it is difficult to build a new property cheap enough in some areas. Prescott was obsessed with developers building flats. Developers didn't actually think it was a good idea and built fewer than he really wanted. Still there were too many as the majority want to live in a house with their own garden and off road parking. Govt interference has distorted the market away from what people actually want to buy. Also the 'affordable housing' restriction stuck on every development has actually increased the cost of the other properties so they are even more over priced. Once all these 'affordable' homes and other interference is removed then developers will quickly find some areas are too cheap and they shouldn't bother building in them as if demand were higher then it would make economic sense to build there. This will even out prices and match supply and demand more closely. If new build developments don't sell then there isn't enough demand in that area. If demand was high enough then the prices would rise far enough that the new build properties seemed reasonable and they would sell.

Markets work well when they aren't interfered with. Market forces which made areas unpopular to build in should have been left alone. There are loads of empty homes in Stoke so they shouldn't be building new ones if old ones are empty.

Raffles99

adr0ck wrote: »

this is a drop in prices of flats not houses

flats - enough said

No, the 43% discount is on a house. I have the Barratt document in front of me (from the Dresdner report) and here are some sample house prices from it (I have ignored the apartment falls, which are on average a 35% discount).

Millers Croft, Castleford
3 bed semi - 24.7% discount
3 bed mid-terrace - 21.8% discount etc

Great Oaks, Doncaster
4 bed semi townhouse - 19.6% discount
5 bed detached house - 42.8% discount etc (£499,995 to £285,995)

The Belt, Gainsborough
3 bed mid-terrace - 21.7% discount
4 bed semi - 25.3% discount etc

Connexion East, Hull
3 bed end terrace - 28.0% discount
3 bed end terrace (diff style) - 32.0% discount etc

... and so on. This price includes a 3% agents fee, so you actually pay 3% less if you deal direct with Barratt.