Is the building industry about to collapse, and how much impact will it have on tree work?

[daveatdave]

don't know about new build still plenty of planning applications going in for large sites in this area but i have noticed a lot of fairly new builds up for sale I don't know if it's the interest rates or they are trying to make a quick profit.  

[AHPP]

4 hours ago, NJA said:

So hard as it is perhaps this is what is needed to lower prices 

 

Fiddling while Rome burns. Bare minimum, scrap the pound and the planning laws. Ideally, scrap the state.

[Puffingbilly413]

13 hours ago, doobin said:

1.8% vs 6%

Exactly this. We're on a 1.95 fix till the end of next year and even though half the mortgage is paid off I'm still not looking forward to having to remortgage at 6%.

 

The impact of that on buyers generally is enormous and enough to simply price many out of the market completely.

[Steve Bullman]

40 minutes ago, Puffingbilly413 said:

Exactly this. We're on a 1.95 fix till the end of next year and even though half the mortgage is paid off I'm still not looking forward to having to remortgage at 6%.

 

The impact of that on buyers generally is enormous and enough to simply price many out of the market completely.

Rate will probably drop by then. There’s a reason why banks have been offering the best rates ever on 10 year mortgage deals 

[doobin]

2 minutes ago, Steve Bullman said:

Rate will probably drop by then. There’s a reason why banks have been offering the best rates ever on 10 year mortgage deals 

Not without throwing the other half of the country to the wolves with rampant inflation they won't.

 

I'm not saying it won't happen, I'm just saying be careful what you wish for!

[Steven P]

£200k houses, they are building the wrong types for first time buyers - round here it is all 'executive homes' with 2 or 3 'affordable' houses thrown in the mix. I reckoned on paying double back, borrow £100k, pay back £200k. For a 200k house with that you need to be earning about £24k (before tax) just for the mortgage, leaves you with about £100 a week on an average salary for everything else. It is affordable if you only work to pay the mortgage. My other assumption was that there would be times when only 1 of us is earning, have to cover all the costs with 1 salary. I don't own an executive home - we could - but would be screwed if anything went wrong.

 

First time buyers need something priced at about £150k max.

[GarethM]

10 minutes ago, Steven P said:

£200k houses, they are building the wrong types for first time buyers - round here it is all 'executive homes' with 2 or 3 'affordable' houses thrown in the mix. I reckoned on paying double back, borrow £100k, pay back £200k. For a 200k house with that you need to be earning about £24k (before tax) just for the mortgage, leaves you with about £100 a week on an average salary for everything else. It is affordable if you only work to pay the mortgage. My other assumption was that there would be times when only 1 of us is earning, have to cover all the costs with 1 salary. I don't own an executive home - we could - but would be screwed if anything went wrong.

 

First time buyers need something priced at about £150k max.

Regardless of the sale price, the builders & banks want a profit.

 

For the sake of argument a 200k house is probably 50k for the builder. The bank at 6% isn't realistically earning much for the risk of 200k and any legal aspects if you default.

 

Hopefully the hike will cut down on the empty flats in city centres and force them to turn these chic apartments into small flats.

[Mike Hill]

1 hour ago, GarethM said:

Regardless of the sale price, the builders & banks want a profit.

 

For the sake of argument a 200k house is probably 50k for the builder. The bank at 6% isn't realistically earning much for the risk of 200k and any legal aspects if you default.

 

This is for banks to lend you £200k,they only need £20 liquidity.

 

That £180k of imaginary money is earning them 6% which is 

£10800 per annum .

Two years along that's their risk covered and the rest is their profit.

 

Ker-ching

[Puffingbilly413]

8 hours ago, Steve Bullman said:

Rate will probably drop by then. There’s a reason why banks have been offering the best rates ever on 10 year mortgage deals 

Hope so. Fingers firmly crossed 

[Steve Bullman]

9 minutes ago, Puffingbilly413 said:

Hope so. Fingers firmly crossed 

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