Investors buying five or more units offered massive discount by housebuilder feeling the squeeze
Barratt Developments has slashed 43% off the price of some of its new homes, in yet more evidence of the credit crunch taking its toll on the construction industry.
The housebuilder is offering the discount to buyers who might be willing to take five or more flats or houses off its hands, according to an analyst at investment bank Dresdner Kleinwort who has seen documents sent to property professionals.
The slump in the markets has led to a huge decrease in demand for new homes, and resulted in a 95% reduction in the value of home loans approved in the UK between July and August.
Alastair Stewart, an analyst with Dresdner Kleinwort, told the Telegraph: “Prices of urban apartments appear to have fallen in many cases by 40% to 50%, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless.”