Beckett tells first-time buyers: don’t delay

[swamp]

My point is that demand is there. Loads of people want to buy houses.

But because the government, builders, banks, agents and house sellers all inflated the market so much they've priced all the first-time buyers out. And now they're living with the consequences.

If house prices had been a little more sensible they would still be very profitable.

demand != shortage

Lots of flats were put up were people don't want to live in flats (i.e. Leeds). The 'demand' was almost purely from BTLers.

Lots of Polish people have gone home because there is no work here and the pound is worthless.

People always want bigger houses.

[contractor79]

who the hell do these government ministers think they are to tell people to go out and buy overpriced property

[BrilloPad]

who the hell do these government ministers think they are to tell people to go out and buy overpriced property

I remember the Sun doing a similar thing in early 1989.......

[PM-Junkie]

who the hell do these government ministers think they are to tell people to go out and buy overpriced property

It could be worse - and indeed it was. Remember at one point this woman was our Foreign Secretary.

And I don't know about anyone else, but I found that DEEPLY embarrassing.

[centurian]

It's a sad, sad state when the whole economy requires an overpriced property sector in order to run.

I don't get why all the house builders have stopped construction, in some cases leaving homes half-finished. Granted, they bought the land at inflated prices but with the number of homes they shove in such as small plot they would still recoup their money several times over? Looks like they're cutting their nose off to spite their face to me.

It isn't just the land - the whole process of building and selling a house has become very expensive.

As the boom developed, virtually every cost rose to accommodate the extra cash sloshing around - materials, bricklayers, plasterers, carpenters, who can (could) earn more than IT contractors.

House builders were happy to pay this because they were still making a big profit anyway and if they kicked up too much of a fuss, they wouldn't get any workers/materials.

Now that the bottom has dropped out of the market, its still possible to make money building houses, but not at the kind of costs previously paid.

It should be quite possible to build a house for 40K - once everyone in the supply chain moderates their costs.

The best way of doing this is to stop building and wait for all the out of work bricklayers, plasterers, carpenters etc. to eat into their savings and then start begging for work at more realistic wages.


Lets just hope that ClientCo's don't start adopting the same approach to IT contractors.

[bobhope]

who the hell do these government ministers think they are to tell people to go out and buy overpriced property

Those government ministers with large BTL portfolios?

[Sysman]

http://www.timesonline.co.uk/tol/new...cle5537031.ece

She has just launched a shared-equity scheme to help first-time buyers purchase Barratt homes.

Poor suckers, especially if conned into buying a "studio" flat. In the recessions of the early 80s and 90s, those things were unsaleable.

[BrilloPad]

Poor suckers, especially if conned into buying a "studio" flat. In the recessions of the early 80s and 90s, those things were unsaleable.

Wasn't there a "flat" in Knightsbridge that was turned into a broom cupboard in mid 90s and then turned back into a flat about 5 years ago?

How long before it becomes a broom cupboard again?

[swamp]

Wasn't there a "flat" in Knightsbridge that was turned into a broom cupboard in mid 90s and then turned back into a flat about 5 years ago?

How long before it becomes a broom cupboard again?

It was a broom cupboard that was turned into a flat. It sold for £36,000 and overlooked Harrods.

You may laugh, but that 'flat' would be worth a lot more than £36,000 now!

[BrilloPad]

It was a broom cupboard that was turned into a flat. It sold for £36,000 and overlooked Harrods.

You may laugh, but that 'flat' would be worth a lot more than £36,000 now!

Which year was it sold for £36k?

You sure its worth more than £36k now?