Are developers waiting for the election?

vet8

We are selling our house, which is in need of extensive restoration, modernisation etc. In our village all the houses like ours have been bought by developers, who either knock them down and start again, or, at the very least, rip them out and do major work.

I thought the same would happen to ours, every house that has sold in our road for the last 10 years has been redeveloped. The EA has priced the place at the same price as other very similar properties have sold for, we have had loads of viewers, but every one wants to live here. We have not had one developer.

The latest people who are keen are a young family with 2 children. We are just a couple and the previous owners were just a couple. I do not think the house is anywhere nearly big enough for a family of four and they do not plan to extend. They want to use the large garage for a business and fit the family into the small bungalow.

Do you think developers etc. are waiting for the outcome of the election?

shane42

vet8 wrote: »

We are selling our house, which is in need of extensive restoration, modernisation etc. In our village all the houses like ours have been bought by developers, who either knock them down and start again, or, at the very least, rip them out and do major work.

I thought the same would happen to ours, every house that has sold in our road for the last 10 years has been redeveloped. The EA has priced the place at the same price as other very similar properties have sold for, we have had loads of viewers, but every one wants to live here. We have not had one developer.

The latest people who are keen are a young family with 2 children. We are just a couple and the previous owners were just a couple. I do not think the house is anywhere nearly big enough for a family of four and they do not plan to extend. They want to use the large garage for a business and fit the family into the small bungalow.

Do you think developers etc. are waiting for the outcome of the election?

maybe they are skint after overpaying for rubbish that they couldnt sell and lost money on when the prices dropped

jonewer

House I'm in at the moment is on the market. Has had several offers all from developers.

This whole "people are waiting till after the election" thing is just another excuse made up to explain why stuff hasnt sold.

dopester

vet8 wrote: »

Do you think developers etc. are waiting for the outcome of the election?

It depends on the type of house, size of plot, location - available financing - and projections on what the return is in knocking down the existing house, rebuilding something fancier and being able to sell it at a profit in a very uncertain future market.

This might not apply to your house, but it does for some. Some snippets from the full article below:

Daily Mail:
It's a crime ... I can't make a killing from my planning deal, says gangster film star

By Mark Anstead
Last updated at 1:51 PM on 14th September 2009

Terry Stone found consent to build two homes on his Berkshire plot did not increase its value.

During the boom years, a sure way of adding value to a house on a decent-sized plot was to gain planning consent to build something bigger. With the first hurdle of planning permission cleared, developers would snap up such properties as they chased tempting profits.

But last year's steep dive in land values, which have fallen far further than the value of most residential property, means that today there is little wisdom in this approach - as actor and gangster-flick producer Terry Stone is discovering.

Knight Frank's Hugo Sattaford, says that even brownfield sites in the South East (where opportunities are still rare) have seen prices fall since the peak of market by 35 per cent.

According to Richard Cracknell, director of Edmunds & Eliott estate agents, two quality houses built to a high standard on Terry's plot could be worth as much as £3million each when finished. But he agrees that the amount developers are willing to advance has fallen dramatically.

'As a rough guide, in a rising market you might reasonably expect to sell land at 45 per cent of the final estimated value of the permitted project,' say Richard.

'That would add a few hundred thousand pounds to Terry's price, but in a more cautious market developers will pay only a maximum of 35 per cent, which in Terry's case is less than he can achieve on the open market today.

vet8

Places are still selling to developers though. A little derelict shack about 1/2 a mile from here went on the market about 6 months ago. It went to sealed bids and there were 81 bidders who offered over the asking price. That is just a building plot and it went for 413,000 - 100,000 over the asking price.

In our case the EA is quiet surprised that developers have not gone for it either.

dopester

vet8 wrote: »

In our case the EA is quiet surprised that developers have not gone for it either.

I've just been reading a few of the threads you've made in the recent past. They make me like you - including quoted snippet below - because I think you're right and sensible redevelopment is required in many areas and should be allowed, so people like me can get a home - rather than another massive mansion and garden for some older boom-time person.

Anyway.. your house hasn't been on the market for that long. Your home must have something going for it, and the asking price not overly insane, to get 15 viewers and 1 offer soon after going to market. Let's hope you can get your circa £400K if nearby shacks are getting the same money.

vet8 wrote: »

More importantly I object to the planning restrictions. There is a shortage of housing around here and yet there is no chance of EVER building any new houses in the village according to the planners, which is silly as people need homes. I am not talking about stuffing 50 houses into a tiny plot, but there are lots of places where you could stick in one extra and it would make little difference. However, the NIMBY neighbours would make a stink.