Persimmon homes to stop building new houses...

glen8

we have just gone through a part-exchange against a new build

we negotiated 50k worth of discount/incentives on a house listed at £230k

thriftybabe

Natman, we are seriously worried as the Construction Industry is our main work. Extensions do not pay what we earn on sites. As I say we have 4 at the moment with another who is supposed to start in August. We already have had letters from a few boys who are school leavers in June looking for apprenticeships and there is no way we can take the chance. The costs involved in training cost a fortune and to be honest the grants only cover whilst the boys are at college. I can understand at present why no-one is considering taking on apprentices. Its a shame but hopefully we will all be able to ride out the storm. Would the government may be not help by giving more grants to encourage small sub-contractors/Contractors to take on apprentices.

space_rider

What I don`t understand is why the government increased interest rates to stop house price rising and now not as many houses are being sold. Surely they should have thought about the knock on effect.

lil_me

I think part of it's down to the fact there is just too many houses, noone wanting to move of course makes that worse. We see new development after new development here and loads are still empty, it's crazy that they build more before others are sold, or more and more commonly at the mo, rented out because they can't sell them.

We have a lot of family in the construction industry but their main work recently has been on industrial estates, shopping places etc which hasn't slowed down yet so not too worried.

TTMCMschine

Interstingly, as a side note, Persimmon had net debt at the end of Dec 2007 of £656 million.

Less than 4 months later their net debt is now £1.03 Billion.


I'd say they're not doing too well.

ramellous1

We are buying a Wimpey home and we asked them to quote on a garden room extension and they turned us down. Seems in the present climate they still can't be bothered with customer service. No wonder their share price is dropping like a stone. If I could get out of it I would.

glen8

after months of research I am glad we didn't buy a persimmon home

I haven't read a good thing about any of their developments

LisbonLaura

teabelly wrote: »

If the house were on at 180k with 40k off you are really paying market value. I'd want a buy one get one free to even bother with most of the new build tat that has been put up locally.

Even that is unsustainable. Buy One Get Two Free is about right as property is around three times overpriced for good times........or was before the inevitable finally happened. Now that times are, shall we say, not so good, property is only worth what anyone is prepared to offer, which is exactly how it should be.

Correction is a mightily painful process; unfortunately in this case some of the biggest culprits will get away with their crimes whilst the innocent suffer

ramellous1

LisbonLaura wrote: »

. Now that times are, shall we say, not so good, property is only worth what anyone is prepared to offer, which is exactly how it should be.

I'm not having a go, but I don't get what you mean. When has this not been the case. Nobody was forced to pay any more than they were prepared to offer.

glen8

ramellous1 wrote: »

I'm not having a go, but I don't get what you mean. When has this not been the case. Nobody was forced to pay any more than they were prepared to offer.

mmmmm, it's not as black and white as that

Low mortgage rates with high income multiples, fee free products, low unemployment with a housing boom

this makes it afforable at the time!!!

In an ideal world we wouldn't be seeing so many repossessions would we. That alone speaks volumes