Why aren’t properties in this block selling?

Ybe

https://www.rightmove.co.uk/properties/154184303

https://www.rightmove.co.uk/properties/156791921

Flats in this block seen quite nice. Yet, I’ve seen many come and go in this block on Rightmove and they don’t sell. The 2 currently on the market (links above) have been on the market for over 6 months with big price drops. And still not selling.  Why? 

I know the block has cladding but I know that the housing association is covering the costs of getting it sorted and they also have an EWS1. It’s also shared ownership but these sellers are selling on full ownership basis by back to back staircasing. And it’s also on pay as you go district heating but I’ve been told it’s not more than £30 a month on average. 

Other 1 bed flats in the area sell so it’s not the location or the fact it’s a 1 bed flat. 

GDB2222

It could be something as simple as price. It is on the high road. You posted another flat in a side road for £50k more, and I would prefer to pay the extra for the better location. 

If there’s a cladding issue, the flats may be unsafe and unsaleable until it gets sorted. Not just some vague promises that the HA will pay the cost. After all, it’s been years since Grenfell, so what’s been holding it up? And maybe they’ll never get round to it. 

District heating is fine, until it breaks down! 

GDB2222

Oh, and it’s interesting that they are priced the same, but the top floor one has slightly more area, as well as a great terrace, whereas the second floor one has a tiny balcony. 

bobster2

Also there are several new flat developments in this area which mean there's quite a bit of supply.

Tabieth

The cladding and the heating system would stop me from even arranging a viewing. It wouldn’t matter to me how nice they are or how good the location.  Those two issues put them firmly in my “no” list. 

Ybe

Tabieth said:

The cladding and the heating system would stop me from even arranging a viewing. It wouldn’t matter to me how nice they are or how good the location.  Those two issues put them firmly in my “no” list. 

What is it about district heating and cladding that puts you off out of interest?

Ybe

bobster2 said:

Also there are several new flat developments in this area which mean there's quite a bit of supply.

Most of them are priced closer to 400k. I don’t think dropping these 2 to 350k has made them any more popular either.  

user1977

On a main road (with all rooms facing it) will deter many.

Mortgage lenders will be put off by commercial units on the ground floor of the building (even though they look fairly benign at the moment).

gwynlas

If you look at similar there are a few 2 bed flats withn 1/2 mile that are cheaper as well as a number of 1 beds,
The idea of shared ownership HA setting service charges might put some people off as well as district heating.

RedFraggle

Neither have the service charge listed. Could be excessive 

snowqueen555

Service charges and ground rent and length of lease aren't listed.

It being a SO also adds additional barriers to potential buyers as HA usually have criteria on who they want to sell to.

As well as this there is cladding. A lot of lenders find these problematic, even with a promise to fix, it's still a risk to lenders.

District heating is also a big red flag. You essentially have no option to change provider, and the repair fees are excessive. They also often have problems with poor supply. You are not under the ofcom price cap either. I'd be skeptical of quoted cost from the seller.