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Increase in building projects for sale - local phenomena?


Cosmic Apple

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Cosmic Apple

In the past month 5 unfinished projects have been listed on RM in my search areas, this is very unusual.

These aren't the normal "someone's gran has died after doing nothing for 30 years" but started projects, at various stages, and are being offered as is rather than when completed by the developer.

I can't remember ever seeing more than 1 or 2 of these a year - if that before! 2 are going to auction, the others are normal listings.

 

 

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By a freak of circumstance I happen to live in a very posh area, even though I am a pleb cubicle slave. Everywhere that there are horrible old houses on very valuable plots you see them being torn down and savvy builders putting a new mansion on it. 

Now everything seems to have slowed right down. If I go away for a week then when I come back there has been little or no change in construction progress. 

My guess is that they know 100% they will not be able to sell the completed property (for the price they want) so why not take the foot off the gas pedal and look for ways to keep going more cheaply and cut costs. Maybe those builders who are really up against it are just throwing in the towel and trying to flog the half completed project for whatever they can salvage. 

These are as I say the small builders. My commute also takes me past larger projects by the likes of Redrow, who also seem to be slowing down although not as much. 

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4 hours ago, Funn3r said:

By a freak of circumstance I happen to live in a very posh area, even though I am a pleb cubicle slave. Everywhere that there are horrible old houses on very valuable plots you see them being torn down and savvy builders putting a new mansion on it. 

Now everything seems to have slowed right down. If I go away for a week then when I come back there has been little or no change in construction progress. 

My guess is that they know 100% they will not be able to sell the completed property (for the price they want) so why not take the foot off the gas pedal and look for ways to keep going more cheaply and cut costs. Maybe those builders who are really up against it are just throwing in the towel and trying to flog the half completed project for whatever they can salvage. 

These are as I say the small builders. My commute also takes me past larger projects by the likes of Redrow, who also seem to be slowing down although not as much. 

Round my way the large house builders are ramping up construction rates. 

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5 hours ago, Cosmic Apple said:

In the past month 5 unfinished projects have been listed on RM in my search areas, this is very unusual.

These aren't the normal "someone's gran has died after doing nothing for 30 years" but started projects, at various stages, and are being offered as is rather than when completed by the developer.

I can't remember ever seeing more than 1 or 2 of these a year - if that before! 2 are going to auction, the others are normal listings.

 

 

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They are selling into a very small market, I wouldn’t think that was mortgageable. 

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Cosmic Apple
10 minutes ago, One percent said:

They are selling into a very small market, I wouldn’t think that was mortgageable. 

1 and 3 certainly are not. 2 probably is - but its going to auction.

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Just now, Cosmic Apple said:

1 and 3 certainly are not. 2 probably is - but its going to auction.

Have the got functioning bathrooms and kitchens?  Normally the criteria I think

 

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Cosmic Apple
Just now, One percent said:

Have the got functioning bathrooms and kitchens?  Normally the criteria I think

2 does, hence why I think it would be OK for a mortgage.

There's another that's been mostly finished, but the kitchen has been gutted and not finished, which seems like a hell of a "shot themselves in the foot" moment.

I'm possibly going for a sniff around 2, but auctions put me off, especially with the 28 day completion target.

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Just now, Cosmic Apple said:

2 does, hence why I think it would be OK for a mortgage.

There's another that's been mostly finished, but the kitchen has been gutted and not finished, which seems like a hell of a "shot themselves in the foot" moment.

I'm possibly going for a sniff around 2, but auctions put me off, especially with the 28 day completion target.

What kind of money are they asking?

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1 minute ago, Cosmic Apple said:

This is 200-300k price range. 

Christ, they all look a lot of house for that money. Where are they, Bradford?  

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Cosmic Apple
5 minutes ago, One percent said:

Christ, they all look a lot of house for that money. Where are they, Bradford?  

Halifax. None of my searches cover Bradford, no way :P

House one is Hebden: https://www.rightmove.co.uk/property-for-sale/property-76078382.html

Closer to Halifax (and now SSTC): https://www.rightmove.co.uk/property-for-sale/property-73696634.html

Everything but a kitchen (unmortgagable?): https://www.rightmove.co.uk/property-for-sale/property-75747236.html

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Just now, Cosmic Apple said:

Halifax. None of my searches cover Bradford, no way :P

Ah, still a cheapest area then. Can’t tell what they are like from one picture but I like the look of number 1. Number 3 can do the ironing. :o

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1 hour ago, spunko said:

Round my way the large house builders are ramping up construction rates. 

Same here but look carefully, are they doing it seriously and confident of actual sales. I am currently renting but will buy when the price is right (not now) and show houses appear all over the place. Last time I had a look 2015 I got shown the door immediately (not suitable for you Sir) but tempted to go back now as a prospective buyer just to gauge the mood. 

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2 minutes ago, Funn3r said:

Same here but look carefully, are they doing it seriously and confident of actual sales. I am currently renting but will buy when the price is right (not now) and show houses appear all over the place. Last time I had a look 2015 I got shown the door immediately (not suitable for you Sir) but tempted to go back now as a prospective buyer just to gauge the mood. 

Seems a bit strange. Did you turn up in your transit, towing a ‘van? 

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1 hour ago, Cosmic Apple said:

2 does, hence why I think it would be OK for a mortgage.

There's another that's been mostly finished, but the kitchen has been gutted and not finished, which seems like a hell of a "shot themselves in the foot" moment.

I'm possibly going for a sniff around 2, but auctions put me off, especially with the 28 day completion target.

Its not the completion target that puts me off auctions, but the fact that they can (legally!) take bids off the walls!

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Bricks & Mortar

Yup.  Seeing it here too.   And I make my living doing jobs like this.  The ones I'm seeing are at similar stage to the first - structural work done, awaiting walls, plumbing, electric, kitchen, bathroom, decor.
Thing is, projects like this have a habit of overspending on the structural portion.  I imagine they've arranged loans for the full work, and spent it all on the structural stuff.  Gone back for more in order to complete, but the banks have a better idea where the market's going. 

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Cosmic Apple
10 hours ago, Bricks & Mortar said:

Yup.  Seeing it here too.   And I make my living doing jobs like this.  The ones I'm seeing are at similar stage to the first - structural work done, awaiting walls, plumbing, electric, kitchen, bathroom, decor.
Thing is, projects like this have a habit of overspending on the structural portion.  I imagine they've arranged loans for the full work, and spent it all on the structural stuff.  Gone back for more in order to complete, but the banks have a better idea where the market's going. 

Was what I was thinking - banks not willing to give them any more cash to continue. A very interesting lead indicator to the banks putting the brakes on if this is the case. Nice to see its not just this area too :)

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14 hours ago, One percent said:

Seems a bit strange. Did you turn up in your transit, towing a ‘van? 

The show house people were very well dressed and posh but I'm not. Don't think they liked my smirking at their build quality either. Also I did my "are you sure that price is correct it sounds very high" routine. 

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17 hours ago, Cosmic Apple said:

Halifax. None of my searches cover Bradford, no way :P

House one is Hebden: https://www.rightmove.co.uk/property-for-sale/property-76078382.html

Closer to Halifax (and now SSTC): https://www.rightmove.co.uk/property-for-sale/property-73696634.html

Everything but a kitchen (unmortgagable?): https://www.rightmove.co.uk/property-for-sale/property-75747236.html

IIRC a "kitchen" for mortgaging purposes is a functioning sink and an oven. You can get a second-hand shitty sink plumbed in + grotty old oven for about £150.

Get the mortgage surveyor in then rip them out ;)

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19 minutes ago, spunko said:

IIRC a "kitchen" for mortgaging purposes is a functioning sink and an oven. You can get a second-hand shitty sink plumbed in + grotty old oven for about £150.

Get the mortgage surveyor in then rip them out ;)

Yep - the other requirement is 1 kitchen and not multiple ones - I discovered that when looking at a property earlier this year. 

Equally too many toilets may be a reason to refuse a mortgage...

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Cosmic Apple
1 hour ago, eek said:

Yep - the other requirement is 1 kitchen and not multiple ones - I discovered that when looking at a property earlier this year. 

Equally too many toilets may be a reason to refuse a mortgage...

What if you have IBS and are a prolific shitter? :)

They clearly don't want HMOs on residential mortgages, understandable.

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On 04/10/2018 at 18:12, Cosmic Apple said:

Halifax. None of my searches cover Bradford, no way :P

House one is Hebden: https://www.rightmove.co.uk/property-for-sale/property-76078382.html

Closer to Halifax (and now SSTC): https://www.rightmove.co.uk/property-for-sale/property-73696634.html

Everything but a kitchen (unmortgagable?): https://www.rightmove.co.uk/property-for-sale/property-75747236.html

Hebdon place, looks like he got stuck finding a plasterer. All gone back to poland?

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54 minutes ago, Bricks & Mortar said:

RBS declaring "caution toward certain sectors", including construction.
https://www.mortgagesolutions.co.uk/news/2018/10/04/brexit-causing-lending-construction-caution-rbs/

Id say its the qe and zirp then htb ffl and tfs to bail out RBS and such like that has created a second obscene house price bubble as to why they are pulling back on lending ... Along with the FED tightening.

But then again ive never destroyed an economy so dont have his companies insight.

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