43% off new Barratt Homes
Discussion
Tonker - your thread is here.
One of Britain's best-known builders has slashed 43 per cent off the price of some new homes as the global financial crisis takes an ever-increasing toll on construction and manufacturing.
By Gordon Rayner and Yvette Essen
Last Updated: 11:19PM BST 30 Sep 2008
Barratt Developments offered the discount to buyers prepared to take five or more flats or houses off its hands in its Yorkshire East division, according to the investment bank Dresdner Kleinwort, which has seen documents sent to property professionals.
The bank also claimed that the six leading property agents in Leeds have between them sold just six new apartments in two months.
Demand for new homes has evaporated after the credit crunch led to a 95 per cent reduction in the value of home loans approved in the UK between July and August.
Alastair Stewart, an analyst with Dresdner Kleinwort, said: "Prices of urban apartments appear to have fallen in many cases by 40 per cent to 50 per cent, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless."
One of Britain's best-known builders has slashed 43 per cent off the price of some new homes as the global financial crisis takes an ever-increasing toll on construction and manufacturing.
By Gordon Rayner and Yvette Essen
Last Updated: 11:19PM BST 30 Sep 2008
Barratt Developments offered the discount to buyers prepared to take five or more flats or houses off its hands in its Yorkshire East division, according to the investment bank Dresdner Kleinwort, which has seen documents sent to property professionals.
The bank also claimed that the six leading property agents in Leeds have between them sold just six new apartments in two months.
Demand for new homes has evaporated after the credit crunch led to a 95 per cent reduction in the value of home loans approved in the UK between July and August.
Alastair Stewart, an analyst with Dresdner Kleinwort, said: "Prices of urban apartments appear to have fallen in many cases by 40 per cent to 50 per cent, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless."
Edited by Vesuvius 996 on Wednesday 1st October 10:02
Vesuvius 996 said:
Barratt Developments offered the discount to buyers prepared to take five or more flats or houses off its hands in its Yorkshire East division, according to the investment bank Dresdner Kleinwort, which has seen documents sent to property professionals.
East Yorkshire division = Hullnice
A friend who is in the know told me recently that they have been selling packages of flats to housing associations at up to 30% discount under build cost 
As for drop in prices of new build flats. Last week the local property news had a public notice of an offer of £75,000 pounds, a quick check on the land registry... sold August 2006 for £175,000.
As for drop in prices of new build flats. Last week the local property news had a public notice of an offer of £75,000 pounds, a quick check on the land registry... sold August 2006 for £175,000.
The Barratt home.
This is one of those terrible places where you can feel a mouse's heart skip on the groud floor, whilst you are reading the paper on the seventh?
Built for the aspirational feckless, by the exploitational tasteless?
Bloody proletariat deserve every last bit of highly flammable chipboard and mechanically recovered meat insulation they get.
This is one of those terrible places where you can feel a mouse's heart skip on the groud floor, whilst you are reading the paper on the seventh?
Built for the aspirational feckless, by the exploitational tasteless?
Bloody proletariat deserve every last bit of highly flammable chipboard and mechanically recovered meat insulation they get.
Edited by Norman D. Potato on Wednesday 1st October 10:15
I've been looking at houses in Newcastle over the last few months.
On a new barn conversion, I have been told by the developer if I offered about £260,000 (roughly 40%)under list price he would snap my hand off.
Still told him to f
k off though.
So it's not just flats/apartments.
On a new barn conversion, I have been told by the developer if I offered about £260,000 (roughly 40%)under list price he would snap my hand off.
Still told him to f
k off though.So it's not just flats/apartments.
Edited by The GMan on Wednesday 1st October 10:19
anonymous said:
[redacted]
I take it that a lot of the BTL investors who piled into these developments will find their properties being revalued by their mortgage companies, resulting in the LTV ratio being well below what was agreed and subsequently being asked for a giant wad of cash immediately...Swilly said:
anonymous said:
[redacted]
I take it that a lot of the BTL investors who piled into these developments will find their properties being revalued by their mortgage companies, resulting in the LTV ratio being well below what was agreed and subsequently being asked for a giant wad of cash immediately...And I wonder how many of them even know it's coming.
Idiots.
Are the banks going to openly revalue everything? They have largely held off so far - which is being views as a genie waiting to pop out of the bottle.
As soon as they have portfolios (resi and commercial) revalued they will potentially have a whole new level of questionable debt sitting on their books. I don't think anyone at the banks wants to press the panic button - so if/when its done it will be one a case-by-case basis and very quietly.
As soon as they have portfolios (resi and commercial) revalued they will potentially have a whole new level of questionable debt sitting on their books. I don't think anyone at the banks wants to press the panic button - so if/when its done it will be one a case-by-case basis and very quietly.
Maxf said:
Are the banks going to openly revalue everything? They have largely held off so far - which is being views as a genie waiting to pop out of the bottle.
As soon as they have portfolios (resi and commercial) revalued they will potentially have a whole new level of questionable debt sitting on their books. I don't think anyone at the banks wants to press the panic button - so if/when its done it will be one a case-by-case basis and very quietly.
It'll be done case by case. People will get a letter saying "hello, we refer to cluase x. Please pay £50,000 within 21 days."As soon as they have portfolios (resi and commercial) revalued they will potentially have a whole new level of questionable debt sitting on their books. I don't think anyone at the banks wants to press the panic button - so if/when its done it will be one a case-by-case basis and very quietly.
v966 said:
It'll be done case by case. People will get a letter saying "hello, we refer to cluase x. Please pay £50,000 within 21 days."
Thats certainly not how it's happening at the moment.I'm talking from a comemrcial viewpoint though. But an educated one
Edited by Maxf on Wednesday 1st October 10:32
Vesuvius 996 said:
Justayellowbadge said:
briSk said:
can we have a link to where that story came from.
(i'd like to look clever in work innit).
It's Soovy.(i'd like to look clever in work innit).
For news stories, check the Mail.
For personal anecdotes, the works of Hans Christian Andersen.
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