The death of overpriced new build?

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The Alliance and Leicester won't lend anymore than 70% of the price of new and nearly new flats from the 19th of Nov.

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=154214&d=340&h=341&f=342

Seems to be one in the eye for gifted deposit schemes and other frauds (especially if others lenders follow).

The average new build flat around my way is around £200K - I can't see many flat buyers forking out a £60K deposit (as second time buyers trading up from a garden shed, caravan or parking space are unlikely to have that much equity).

epz_2

time to sell/short shares in house building companys i think

terrierlady

developers tend to use their own independent F.A"s who know where to place each type of mortgage many lenders still happy to lend on new build apartments etc, gifted deposits will move to cash backs received 14-28 days after completion, developers will get around this, i can remember in the late 80s taking a building society book with the gifted deposit registered in the purchasers name etc into the nominated building society , so things have moved on from then, at least dealings are more open and honest now a days.:rolleyes:

Jonbvn

Lets face it, this comes as no great shock. There has been a huge oversupply of new build flats in several cities across the country. Leeds, Manchester, Nottingham and Cardiff are the ones I know about. No wonder there is a question mark over their value.

They all try to sell you the BS line of executive living. However, what the majority of families want and need is decent HOUSES!

lynzpower

this is very interesting I think, and yet again another good quality *flourescent highlighted* example screaming out against the usual lame "supply and demand" argument which is based on population wanting the product.

Demand for NB flats YET again restricted.

I remember someone earlier in the year stating that one lender ( was it GMAC?) who is now not lending on any NBFs in Woolwich- if anyone can find the link to that thread id be interested.

Rover

epz wrote: »

time to sell/short shares in house building companys i think

:rotfl: You're abit late there. See any builders performance over the last twelve months. I have kept telling people.................

chriserenity

If new builds continue to be as expensive as they are I sincerely hope they improve their energy efficiency/carbon rating standards.

Friend of mine moved into a new build 2 bed flat in Cambridge last month and it was only a 'B band' on the SAP assessor's report. Its disgusting that new homes built even now aren't A rated.