Nottingham Price Crash ?

[thediceman]

Ok, the title may be a little misleading as I'm sure the Nottingham housing market is really no different from that of the national market. The reason for this thread is that having looked at a forthcoming property auction I thought I might consider buying a property in Nottingham as a bolt hole for dtd. So looking at the properties in the auction in Nottingham I see one the following:

a six bedroom @ a guide price of £ 75,000

http://www.countrywidepropertyauctions.co.uk/search-results.php?searchobj=property_search&dbtype=

WTF, granted it's leasehold, not something I normally look at but thinking it must be a mistake I start to do some research. It appears this was part of a new development as a number of properties sold on the same date, all for the same price, on the same date 07/10/05, that price being £249,995. So in a matter of a couple of years these properties have dropped in £175,000. I've even found estate agents are trying to sell some of this development, freehold, for between £100,000 to £125,000. So what is it about this area that has seen it fall so dramatically???. Is there a nightly drive by shooting?. Has it become a drug den?. Are the neighbours all ladies of the night?. Then again with such a dramatic fall in value it's probably all of the above.

So for those who think investing in property is easy money, think again. Just ask the people who are probably bankrupt as a result of investing in this development.

[Graham C]

Is it the Gadd St one?  Give the reinforced steel front door covers and the heavy duty fencing next to the house, I'd say it was a pretty rough area tbh.   There seems to be a few business located in the street too, perhaps it's a few houses on the end of an industrial estate?  I'd go and have a look before bidding.

Also, it's only a guide price and if it sells, will sell for a bit more, they always do.

[The_nun]

Here, just incase you do decide to buy it I have found you a matching His n Her body armour set for when you return home in the early hours of the morning with your poker winnings.

[thediceman]

Yes it is the Gadd Street property, lot 91.

Indeed the reinforced steel door did set the alarm bells ringing and give me some indiction as to the type of neighbourhood it is and do not fear for I am not considering bidding for it. I was just interested in seeing how such a property had dropped so much in value in such a short space of time. Even taking into account the typical practise of a developer over valuing it and then selling it to some naive investor with some cashback deal it is some dramatic drop. Just thought as we have so many Nottingham blonde members they may have some insight in this area.

As for the guide price, in the current market I would be surprised if it went anything above 10% that guide price. I've actually brought at numerous auctions so am fairly familiar with the process. A guide is only a guide but more often than not they are fairly accurate. Not all auction properties go for loads more than the guide price contry to what you may see on homes under the hammer

[Longy]

I just had a look at google maps to see where it is Nottingham. It looks like its in Radford which is a rough area, there is some fact that you are 5 times more likely to be shot outside the KFC on the nearby Alfreton rd then any other kfc in the country.

[thediceman]

Personally I think anyboody should be shot for going to a KFC 

[Longy]

Personally I think anyboody should be shot for going to a KFC 

Sounds like you should buy that place quickly then.

[doubleup]

I think that new developments will be the most affected by the downturn.  There was a luxury flat up for auction in glasgow that sold new for 225k and didn't make its reserve at a guide price of 147k.

[thediceman]

I think that new developments will be the most affected by the downturn.  There was a luxury flat up for auction in glasgow that sold new for 225k and didn't make its reserve at a guide price of 147k.

I agree. It was this market that attracted many new buy-to-let landlords as they were seduced by the lovey, shiny, flash, luxury apartments and promised unrealistic rental returns. The problem is these new developments had no history in which to be compared against. lThis is similar to many overseas developments. As a end result this market drops faster than any other sector and many people lose a fortune. Personally I like to stick to traditional semi's for the young families who have yet to join the property ladder due to either finance or their need to remain flexible due to their work.

[AndrewT]

I think that new developments will be the most affected by the downturn.  There was a luxury flat up for auction in glasgow that sold new for 225k and didn't make its reserve at a guide price of 147k.

New developments are going to hit the toilet big time. Many of these are small, pokey, shoddily built pieces of crap that just happen to have been built at the right time. As many of them are buy-to-let there will come a tipping point where rental income becomes less than the mortgage payments. In a rising market this isn't a problem, as there is a gain in terms of house value. But in a falling market the landlords will dump these flats onto the market in an effort to cashin as they see their money disappear with every drop in prices.

[thediceman]

I think that new developments will be the most affected by the downturn.  There was a luxury flat up for auction in glasgow that sold new for 225k and didn't make its reserve at a guide price of 147k.

New developments are going to hit the toilet big time. Many of these are small, pokey, shoddily built pieces of crap that just happen to have been built at the right time. As many of them are buy-to-let there will come a tipping point where rental income becomes less than the mortgage payments. In a rising market this isn't a problem, as there is a gain in terms of house value. But in a falling market the landlords will dump these flats onto the market in an effort to cashin as they see their money disappear with every drop in prices.

It's already happening, big time.

I look forward to seeing many bargins at future auctions.

[Jon MW]

Regarding the original property mentioned:

This comes from the housepricecrash.co.uk forum

these were the flats that were shown on bbc's panorama. basically theyre student properties and are kitted out for student living.

there was some kind of underhand dealing with the management company whereby they gave a cashback deal so that the buyer didnt need a deposit. as a result they ended up paying inflated prices for the properties and the management company did a runner.

theyre all repossessed now and theres about 15 empty 6-bed houses all in the same complex.

It is a bad area - but I think this primarily explains the price.

[thediceman]

Cheers for the info Jon. I watched that panorama and remember the highlighted London case and them talkig about Nottingham but didn't realise it was this area.

I'm sure it's a rough area but I'm sure it can't be any worse than Nottinghams Travelodge.

[Bongo]

Both the travelodge's seem to be in quite nice areas.

I always found Radford rather intimidating!

[redsimon]

Ok, the title may be a little misleading as I'm sure the Nottingham housing market is really no different from that of the national market. The reason for this thread is that having looked at a forthcoming property auction I thought I might consider buying a property in Nottingham as a bolt hole for dtd. So looking at the properties in the auction in Nottingham I see one the following:

a six bedroom @ a guide price of £ 75,000

http://www.countrywidepropertyauctions.co.uk/search-results.php?searchobj=property_search&dbtype=

WTF, granted it's leasehold, not something I normally look at but thinking it must be a mistake I start to do some research. It appears this was part of a new development as a number of properties sold on the same date, all for the same price, on the same date 07/10/05, that price being £249,995. So in a matter of a couple of years these properties have dropped in £175,000. I've even found estate agents are trying to sell some of this development, freehold, for between £100,000 to £125,000. So what is it about this area that has seen it fall so dramatically???. Is there a nightly drive by shooting?. Has it become a drug den?. Are the neighbours all ladies of the night?. Then again with such a dramatic fall in value it's probably all of the above.

So for those who think investing in property is easy money, think again. Just ask the people who are probably bankrupt as a result of investing in this development.

lol @ anyone paying £249K for a property in Radford...having lived there for many years until 2000 those sales must have been fraudulent ?