Affordable new build - not selling?

daveyjp

Devil in the detail.  It may be a FTB property in perpetuity, that severely restricts the number of buyers in future.  Does 20% reduction adequately reflect this risk?

tbo127

daveyjp said:

Devil in the detail.  It may be a FTB property in perpetuity, that severely restricts the number of buyers in future.  Does 20% reduction adequately reflect this risk?

Is it a 20% reduction is the question. 

tbo127

theoretica said:

Is it only 4 out of 86 reserved?  The price list only has 16 flats on it total , so maybe it is 12 of 86 remaining?  Needing to be a first time buyer will surely restrict their potential buyers.

It’s 4 out of 86. I’ve been watching this development and the other Pocket ones. 

[Deleted User]

People don't want micro flats that are barely fit for human habitation to start with. As soon as they start a family they will need to move.

Prices are falling fast too, and mortgage rates are going up quickly.

tbo127

[Deleted User] said:

People don't want micro flats that are barely fit for human habitation to start with. As soon as they start a family they will need to move.

Prices are falling fast too, and mortgage rates are going up quickly.

Well it’s the prices falling part that worries me about this development now. The prices havent changed since they were first marketed 6 months ago. 

GDB2222

GaleSF63 said:

Section62 said:

tbo127 said:

Is it normal that this “affordable” new build development (still under construction) has 4 properties reserved (out of 86 units to sell) after 6 months of marketing? 

No car parking.  Yes, the development is more or less on top of a tube station, but there are areas of outer London (like this one) where there is very little to do if you don't have a car or other motorised transport.  There's better (more connected/cheaper) places to live if you spend most of your time in central London.

In effect you are being sold a lifestyle rather than a flat.  That lifestyle comes with no car.  So it isn't for everyone.

There will be some disgruntled local home-owners when the street gets clogged up with semi-permanently parked cars as there will inevitably be buyers with cars. Or even just their visitors.

It’s a CPZ all round there. So, to park semi permanently the buyers would need a resident parking permit. But, they won’t be allowed one. That’s one of the conditions that goes with buying the flats.

tbo127

GDB2222 said:

Are these really affordable housing, ie heavily discounted in price for key workers?

Or, are they very small flats being sold at normal price for the floor area? So, the affordable is just a marketing gimmick?

Somebody asked about this block a few months ago (maybe the op?). and at that time it didn't look like these flats were particularly cheap. Since then, prices have fallen a bit, generally. 

It actually has a section 106 requirement to be sold at 20% of open market value. But then I suppose the open market value is whatever the developer wants it to be. 

GDB2222

tbo127 said:

GDB2222 said:

Are these really affordable housing, ie heavily discounted in price for key workers?

Or, are they very small flats being sold at normal price for the floor area? So, the affordable is just a marketing gimmick?

Somebody asked about this block a few months ago (maybe the op?). and at that time it didn't look like these flats were particularly cheap. Since then, prices have fallen a bit, generally. 

It actually has a section 106 requirement to be sold at 20% of open market value. But then I suppose the open market value is whatever the developer wants it to be. 

Do you have a link to the requirements of this particular agreement? As I understand it, they are all individually negotiated between the LA and the developer.

The nightmare situation for buyers would be that they buy at 20% discount from an inflated value, but have to sell at 20% discount from actual market value. Given that these flats are too small to bring up a family, that could be a problem.

Section62

GDB2222 said:

tbo127 said:

GDB2222 said:

Are these really affordable housing, ie heavily discounted in price for key workers?

Or, are they very small flats being sold at normal price for the floor area? So, the affordable is just a marketing gimmick?

Somebody asked about this block a few months ago (maybe the op?). and at that time it didn't look like these flats were particularly cheap. Since then, prices have fallen a bit, generally. 

It actually has a section 106 requirement to be sold at 20% of open market value. But then I suppose the open market value is whatever the developer wants it to be. 

Do you have a link to the requirements of this particular agreement? As I understand it, they are all individually negotiated between the LA and the developer.

The nightmare situation for buyers would be that they buy at 20% discount from an inflated value, but have to sell at 20% discount from actual market value. Given that these flats are too small to bring up a family, that could be a problem.

The agreement (as at Jan 2021) can be found in the documents tab of the application - Ref = 19/4293/FUL

https://www.barnet.gov.uk/planning-and-building-control/planning/find-and-comment-planning-applications

GDB2222

Section62 said:

GDB2222 said:

tbo127 said:

GDB2222 said:

Are these really affordable housing, ie heavily discounted in price for key workers?

Or, are they very small flats being sold at normal price for the floor area? So, the affordable is just a marketing gimmick?

Somebody asked about this block a few months ago (maybe the op?). and at that time it didn't look like these flats were particularly cheap. Since then, prices have fallen a bit, generally. 

It actually has a section 106 requirement to be sold at 20% of open market value. But then I suppose the open market value is whatever the developer wants it to be. 

Do you have a link to the requirements of this particular agreement? As I understand it, they are all individually negotiated between the LA and the developer.

The nightmare situation for buyers would be that they buy at 20% discount from an inflated value, but have to sell at 20% discount from actual market value. Given that these flats are too small to bring up a family, that could be a problem.

The agreement (as at Jan 2021) can be found in the documents tab of the application - Ref = 19/4293/FUL

https://www.barnet.gov.uk/planning-and-building-control/planning/find-and-comment-planning-applications

The meat of the agreement seems to be in schedules 3 to 6. Unfortunately, they have been omitted from the downloadable copies. 

I must admit that I only skimmed the documents