When new build developers don't pull their finger out...

[oranjeboom]

https://www.bbc.co.uk/news/uk-england-cornwall-44879858

 

I bet this got the attention of the Persimmon directors!

[daiking]

Doubt it. There’s always greater fools who will come along and buy trash.

[Jeremy Harris]

The same thing is happening around here where people are so unhappy with the quality that they've put signs up warning people,  The argument about the poor build quality has been going on for a long time, but they are still selling houses like hot cakes, as for many a new build is the only way they can afford to get a house, because of the incentive from the Help to Buy scheme.

[SteamyTea]

1 hour ago, JSHarris said:

because of the incentive from the Help to Buy scheme.

Doesn't that just push the asking price up.  So really like a false discount.

 

[ProDave]

2 minutes ago, SteamyTea said:

Doesn't that just push the asking price up.  So really like a false discount.

 

And skews the market in favour of new builds rather than existing houses that are not eligible for the help to buy.

[daiking]

Call a spade, a spade.

 

its a bung to builders and banks.

Edited July 19, 2018 by daiking

[SteamyTea]

33 minutes ago, ProDave said:

And skews the market in favour of new builds rather than existing houses that are not eligible for the help to buy.

There are other schemes for second hand houses I think.

 

Really odd the way people see house prices.  They often see it as defered income, like a pension, except it is no direct cost.

Keep someones mortgage repayments the same, but tell them their house has dropped in value, and the feel cheated.

Up the mortgage repayments but keep the house prices rising and they feel winners.

Tossers.

Edited July 19, 2018 by SteamyTea

[epsilonGreedy]

On 19/07/2018 at 15:01, SteamyTea said:

Doesn't that just push the asking price up.  So really like a false discount.

 

 

Indeed. Some economists have observed there was a remarkably close correlation between the introduction of the Government new build incentive and an equivalent pop in new build asking prices.

[Jeremy Harris]

12 minutes ago, epsilonGreedy said:

 

Indeed. Some economists have observed there was a remarkably close correlation between the introduction of the Government new build incentive and an equivalent pop in new build asking prices.

 

The same this seems to happen with every government incentive scheme.  Years ago, when we had cavity wall insulation installed, there was a government grant.  Just for a laugh I rang around a few of the larger installers and asked them to quote to install blown bonded EPS bead insulation into our house, stressing that we were not eligible for any government grant.  The prices varied between £300 and £350. 

 

I then waited a while and got more quotes, this time stressing that we were eligible for the government grant.  The prices were the same, £300 to £350.  The bottom line is that the installers just looked at the grant as being additional profit, rather than something to reduce the price to homeowners.

 

The same is true for just about every scheme going, and I'm damned certain that developers have factored in the Help to Buy assistance into their "starter home" pricing.