Financial crisis: Banking crisis bites deeper in construction and manufacturing
Sunday, October 05, 2008
One of Britain's best-known builders has slashed 43 per cent off the price of some new homes as the global financial crisis takes an ever-increasing toll on construction and manufacturing.
Barratt Developments offered the discount to buyers prepared to take five or more flats or houses off its hands in its Yorkshire East division, according to the investment bank Dresdner Kleinwort, which has seen documents sent to property professionals.
The bank also claimed that the six leading property agents in Leeds have between them sold just six new apartments in two months.
Demand for new homes has evaporated after the credit crunch led to a 95 per cent reduction in the value of home loans approved in the UK between July and August.
Alastair Stewart, an analyst with Dresdner Kleinwort, said: "Prices of urban apartments appear to have fallen in many cases by 40 per cent to 50 per cent, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless."
Further evidence of an overall slump in the economy came with the news that many car manufacturers have been forced to bring in three and four day weeks as the motor industry faces its worst crisis in 30 years.
Article continues at Telegraph Online
Barratt Developments offered the discount to buyers prepared to take five or more flats or houses off its hands in its Yorkshire East division, according to the investment bank Dresdner Kleinwort, which has seen documents sent to property professionals.
The bank also claimed that the six leading property agents in Leeds have between them sold just six new apartments in two months.
Demand for new homes has evaporated after the credit crunch led to a 95 per cent reduction in the value of home loans approved in the UK between July and August.
Alastair Stewart, an analyst with Dresdner Kleinwort, said: "Prices of urban apartments appear to have fallen in many cases by 40 per cent to 50 per cent, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless."
Further evidence of an overall slump in the economy came with the news that many car manufacturers have been forced to bring in three and four day weeks as the motor industry faces its worst crisis in 30 years.
Article continues at Telegraph Online
Labels: Barratt Developments, House market, Housebuilders
