New Builds and Recession?

happy_2008

It has come to my attention that alot of new flats/houses are being built by builders and they are having no problems in shifting these plots?

In this current climate i was kinda expecting plots to be hard to sell but am i missing something? So far i have been to view some new plots with various builders and they are being sold despite being overpriced by the builder

bristol_pilot

Gifted deposits, aka cashback. It is also a lot less hassle to buy a newbuild, even if you are paying over the odds for it.

pinkshoes

There is still a LOT of demand for properties if they're priced fairly.

New builds priced comparable to older properties are attractive to a lot of buyers as they are chain free!

brit1234

happy_2008 wrote: »

It has come to my attention that alot of new flats/houses are being built by builders and they are having no problems in shifting these plots?

In this current climate i was kinda expecting plots to be hard to sell but am i missing something? So far i have been to view some new plots with various builders and they are being sold despite being overpriced by the builder

Then why are the developers constantly moaning about restrictive mortgage lending if what you say is true.

43% of homes being sold are some sort of shared equity/ownership, so most will be newbuilds. Thats the only thing I can think off, that way they get round the deposit issue.

Terrysdelight

brit1234 wrote: »

Then why are the developers constantly moaning about restrictive mortgage lending if what you say is true.

43% of homes being sold are some sort of shared equity/ownership, so most will be newbuilds. Thats the only thing I can think off, that way they get round the deposit issue.

I totally agree. Also, a lot of new builds in my area have had to be sold off to local housing associations.

AbbieCadabra

slightly different to the normal market, but i'm watching a load of new build apartments in Cornwall - they are definitely not shifting & prices are falling fast, £525k reduced to £460k & £395k to £320 were some of the latest chunks to fall off!

brit1234

AbbieCadabra wrote: »

slightly different to the normal market, but i'm watching a load of new build apartments in Cornwall - they are definitely not shifting & prices are falling fast, £525k reduced to £460k & £395k to £320 were some of the latest chunks to fall off!

The average wage in cornwall is low. It was london second buyers who put the house prices sky high and killed off many town and villages down there. Well beyond the scope of locals, so there is a big area for falls.

bristol_pilot

£525k for a flat in Cornwall? :rotfl:

bristol_pilot

brit1234 wrote: »

43% of homes being sold are some sort of shared equity/ownership, so most will be newbuilds.

First time I have seen this statistic. If correct, this may be the next 'timebomb' (aka mis-selling scandal) starting to build.

bristol_pilot

Wouldn't you be just thrilled to pay half a million pounds for an 'exclusive' apartment only to find the rest of the block sold off to a housing association and filled with their tenants paying £50 pw to live there. Priceless.

AbbieCadabra

brit1234 wrote: »

The average wage in cornwall is low. It was london second buyers who put the house prices sky high and killed off many town and villages down there. Well beyond the scope of locals, so there is a big area for falls.

absolutely, it's not happening fast at the moment, but i think prices will drop a fair amount, no matter what the experts say about holiday areas 'holding their own'.

bristol_pilot wrote: »

£525k for a flat in Cornwall? :rotfl:

that was my reaction too!

bristol_pilot wrote: »

Wouldn't you be just thrilled to pay half a million pounds for an 'exclusive' apartment only to find the rest of the block sold off to a housing association and filled with their tenants paying £50 pw to live there. Priceless.

yup, at least one development has gone this way & i wouldn't be surprised to see others too. there still seems to be the occasional holiday home sale, but supply far exceeds demand now. the boom time up to 2007 is well & truly over.


back more to what the OP was talking about, i know of a few small'ish developments in our area, East Midlands, where the builders were offering 100% mortgage offers via Yorkshire Bank. they were all sold about a year ago now. it was a condition that each development had to have some element of social housing, which i think is pretty common at the moment.