I can offially announce..................

[hitony]

That the Housing industry in this country is now in meltdown, I have worked for one of the largest developers for many years, and yesterday I (and MANY others) was put on 30 days notice for redundancy and from what i have been made aware of recently, this is going to affect alot of people related to the industry (Builders merchants, sub contractors etc etc)

The problem I have, is as much as i have many contacts in the trade, of course everyones in the same boat

The future is not looking to good

Anyone else affected by this on here ?

 

[algie]

It affects me being a agency driver.I get alot of work through building companies and steel work using my Hiab.I've been looking for full time work but these sort of compaines are not recruiting at the moment unless of course you go and work for Travis Perkins for crap money.Even Kitchen suppliers have felt the pinch but not as bad when the summer is over.Still plenty of work through the summer but after that it's a serious problem.I need to find work in the next 3 months.

 

[hitony]

It affects me being a agency driver.I get alot of work through building companies and steel work using my Hiab.I've been looking for full time work but these sort of compaines are not recruiting at the moment unless of course you go and work for Travis Perkins for crap money.Even Kitchen suppliers have felt the pinch but not as bad when the summer is over.Still plenty of work through the summer but after that it's a serious problem.I need to find work in the next 3 months.

I am starting to look abroad for work in the short term, I think it is my only possible solution for now, there is absolutly nothing in this country for me at the moment, don't get me wrong, i want to go abroad to work, about as much as i want to stick a needle im my eye!!! but if needs must, i suppose.

Good luck in your search

 

[bhaexpress]

I am starting to look abroad for work in the short term, I think it is my only possible solution for now, there is absolutly nothing in this country for me at the moment, don't get me wrong, i want to go abroad to work, about as much as i want to stick a needle im my eye!!! but if needs must, i suppose.

Good luck in your search

Auf Weidesen chaps ? Which one are you ? I know who Oz is ! Seriously, tough break, good luck with that.

 

[dougdeep]

It affects me being a agency driver.I get alot of work through building companies and steel work using my Hiab.I've been looking for full time work but these sort of compaines are not recruiting at the moment unless of course you go and work for Travis Perkins for crap money.Even Kitchen suppliers have felt the pinch but not as bad when the summer is over.Still plenty of work through the summer but after that it's a serious problem.I need to find work in the next 3 months.

Vacancies at our place Algie.

 

[hitony]

Vacancies at our place Algie.

Any for me please Doug, I can drive a car mate

 

[Lankyseagull]

My company (Architects) detected a downturn last September - fortunately we concentrated our marketing efforts in other places and have a secured workload taking us forward over the next six months.

Since January this year the decline has been more evident. In January some housebuilders were writing to consultants and sub-contractors stating that they were reducing all contracts by 5% - even those previously agreed (not sure how legal that is!).

In March, Persimmon stopped work on many sites and delayed the start on others because they had far too much unsold stock on their hands.

But it's really been the last month that things have fallen off of a cliff:

Fri May 9 - McCarthy & Stone announced 10% redundancies.

Tues 13 May - Barratts announced 20% redundancies (out of a 25,000 workforce).

Fri 16 May - Crest Nicholson announced 10% redundancies and Redrow 15%.

Wed 21 May - Taylor Wimpey announced that they were closing 13 regional offices (mainly the old Bryant Homes offices) making 10% of their workforce redundant (approx. 600 jobs).

In my company, we're preparing ourselves for a pretty rocky time for the next 12-15 months.

 

[The Large One]

So, how come this is going on when there are hundreds of thousands of houses being built in the south east?

 

[dougdeep]

Lots of builders needed NEAR Falmer soon.

 

[Lankyseagull]

So, how come this is going on when there are hundreds of thousands of houses being built in the south east?

The completed houses are remaining unsold. The empty units are then costing the developers more interest on their initial costs.

I was talking to one of my clients at Bellway Thames Gateway last week. He told me that since December Bellway have only sold 25 dwellings across the whole of the South - that's a region from South Wales through to East Kent.

A couple of years ago, they were selling 25 units a week!

The only way developers are able to keep things moving at the moment is by offering more units to Housing Association and RSL's at far less than the market value.

 

[Gully]

It seems a bit of a paradox that the domestic market is taking a down-turn when other sectors of construction appear fairly buoyant. Take a wander round the town where I live and there are building sites in just about every street, there is a huge one in an area by the docks where a massive re-generation project is underway...I was in Bristol back in January, a vast chunk of the city centre is a building site, I imagine the situation to be much the same in any town or city. However, pretty much every news broadcast has stories of doom and gloom in the domestic market...I find it hard to believe that supply is now outstripping demand.

 

[Uncle Spielberg]

As a mortgage broker I can confirm the trading conditions are the worst I have encountered since 1990. The property market is in total collapse and potentially much worse than the collapse in the early 1990's. I know several clients who have had their proeprtis on the market for 9 months, some have had NO viewings for 3 months. Sales are 50% down and those sales that are put in hand, fall through rates are 45%, 3 times what they were 2 years ago.

Estate agents are closing up all over the show, Wyatts, central Hove, Mishon Mackay, Western Rd, Brighton, many estate agents will go to the wall in the next year , those that survive will close branches and keep core branches and shed staff to brings cost to a bare minimum to allow them to trade. Estate agents will also merge. I would imagine there will be 33% less estate agents in Brighton & Hove by this time next year. Many mortgage brokers will go to the wall. For estate agents and mortgage brokers this year is all about SURVIVING. Lenders have simply STOPPED lending money. Lenders have closed shop and wish to retain the decent borrowers they have on their books, they are not interested in getting new business, the opposite. Until recently lenders competed to have the best rate on the market, now they are competing NOT to have the best rate on the market, meaning products come and go with 48 hours. Income multiples are down, loan to value's are much lower, lending criteria is much stricter. Mortgage approvals are 40% down year on year, a first time buyer is now an endangered species. People are not moving they are staying put and upgrading their properties. After all who would want to pay the Labour Government 3% for a £ 300000 purchase, ie £ 9000 or 4% for a £ 550000 purchase, ie £ 22000 in Stamp Duty. Brown trebled and quadrupled stamp duty. He could get some movement in the market in a stroke by reducing stamp duty to 1% across the board as it was before Labour got power but does not have the wit to do it.

There is NO money in the economy. 5 lenders are controlling the mortgage market and forming a cartel. Money is the oil that keeps the engine running, there is no money, no oil and the engine has blown a head gasket and is about to die unless something drastic happens very soon, property prices could free fall and lose 20% in the next 2 years.

" All of this is my opinion and not fact "

 

[Cheeky Monkey]

As a mortgage broker I can confirm the trading conditions are the worst I have encountered since 1990. The property market is in total collapse and potentially much worse than the collapse in the early 1990's. I know several clients who have had their proeprtis on the market for 9 months, some have had NO viewings for 3 months. Sales are 50% down and those sales that are put in hand, fall through rates are 45%, 3 times what they were 2 years ago.

Estate agents are closing up all over the show, Wyatts, central Hove, Mishon Mackay, Western Rd, Brighton, many estate agents will go to the wall in the next year , those that survive will close branches and keep core branches and shed staff to brings cost to a bare minimum to allow them to trade. Estate agents will also merge. I would imagine there will be 33% less estate agents in Brighton & Hove by this time next year. Many mortgage brokers will go to the wall. For estate agents and mortgage brokers this year is all about SURVIVING. Lenders have simply STOPPED lending money. Lenders have closed shop and wish to retain the decent borrowers they have on their books, they are not interested in getting new business, the opposite. Until recently lenders competed to have the best rate on the market, now they are competing NOT to have the best rate on the market, meaning products come and go with 48 hours. Income multiples are down, loan to value's are much lower, lending criteria is much stricter. Mortgage approvals are 40% down year on year, a first time buyer is now an endangered species. People are not moving they are staying put and upgrading their properties. After all who would want to pay the Labour Government 3% for a £ 300000 purchase, ie £ 9000 or 4% for a £ 550000 purchase, ie £ 22000 in Stamp Duty. Brown trebled and quadrupled stamp duty. He could get some movement in the market in a stroke by reducing stamp duty to 1% across the board as it was before Labour got power but does not have the wit to do it.

There is NO money in the economy. 5 lenders are controlling the mortgage market and forming a cartel. Money is the oil that keeps the engine running, there is no money, no oil and the engine has blown a head gasket and is about to die unless something drastic happens very soon, property prices could free fall and lose 20% in the next 2 years.

" All of this is my opinion and not fact "

One in the eye for all the buy to let magnates and all those stupid enough to pay obscene prices for overvalued properties these last few years. There's such a big deal about prices dropping by 10% - in many areas they've gone up 300% in the last six or seven years ffs!

 

[Uncle Spielberg]

1998 - £ 100000
2007 - £ 300000
2% fall = £ 60000
2009 - £ 240000

 

[Uncle Spielberg]

Its a cold from the USA SUB Prime implosion but also Brown's shameful mismanagement of the economy and the population buying everything on the back of easy credit and paper equity gains in properties.

 

[Icy Gull]

1998 - £ 100000
2007 - £ 300000
2% fall = £ 60000
2009 - £ 240000

A 2% fall on 300,000 is 6,000 isn't it, 60,000 is a 20% fall

Edit: on re-reading your previous post I assume that the 2% was a typo

 

[Uncle Spielberg]

Yes I meant 20% as per my article

 

[Gully]

On the face of it this situation would appear to suggest an adjustment downwards in house prices, which should favour first time buyers...if they can find a lender prepared to agree a mortgage, which judging by the above comments will not be easy.

I feel that there is a big difference between this re-adjustment and that which happened at the start of the 90's, people tend to have more equity in their property, which of course will be eaten up by the downward trend. The last crash occurred accompanied by a deep recession and at a time when property values had been booming, people were mortgaged beyond the hilt just to get on the property ladder. At that time for many they had no equity and financial hard times resulted in default and repossession.

I bought my first house in 92, when the property market had about as much life in it as a kipper...the place I bought had been up for sale for two years, the previous owner had been repossessed, apparently he couldn't meet his mortgage repayments and did a bunk. The mortgage lender were thus left with an asset that they could not sell and whose value sailed downwards over the space of two years. Would I be right in saying that the lenders are trying to avoid this situation happening again and will try to keep borrowers in their houses rather than go for reposession and end up with an asset that depreciates in value faster than a rusty Lada.

 

[ridda]

People got greedy the partys over this has nothing to do with any goverment.

 

[Uncle Spielberg]

Not really 27000 repossessions in the first 3 motnsh of 2008, likely to be over 100000 this year