Tens of thousands of new-build homes remain empty across London, expert warns
Khider said buyers can find better deals over the next 12 to 18 months as developers face pressure to sell unsold properties.
Around 22,000 new-build homes are estimated to be standing empty across London, according to property consultant Nathan Khider, founder of Nathan K Real Estate.
Khider said buyers can find better deals over the next 12 to 18 months as developers face pressure to sell unsold properties.
He said high land and construction costs, combined with weaker sales values, left some developers unable to achieve their expected prices.
Khider added: “The problem developers have is that they’ve already spent huge amounts of money buying the land and building these developments, so they can’t afford to sell the properties for much less.
“But at the same time, they’re not getting the values they expected. Something eventually has to give.
“My advice to anyone looking at a new build would be to be patient. Over the next 12 to 18 months, I think there are going to be opportunities to find a deal.”
Khider continued: “Land in London is very expensive and that takes up a huge part of the cost of a development before you’ve even built anything.
“When so much money has gone to getting the site, developers still have to make the numbers work. In my experience, that can sometimes mean compromises are made on the quality of the finished property.
“Developers can’t just sit on empty properties forever. They need money coming back into the business so they can pay their costs and move on to the next project.”
He added: “That’s why I think buyers who are prepared to wait and negotiate could find opportunities.
“If a developer has units they need to sell, there may be a deal to be done.”
Related
New build starts up 6% as completions drop by 3% – MHCLG
Your First Home scheme could leave FTBs unable to sell, property expert warns
Mortgage approvals drop as buyers await Budget – Yopa
New build homes with good views command 81% price premium – UKPD
Tories call for Stamp Duty and Future Homes Standard to be scrapped
UK homebuyers less willing to compromise than overseas buyers, study reveals
Average FTB deposit nears £70,000, L&C Mortgages finds
Almost half of buyers will delay property search until after Autumn Budget, research finds
69% of homebuyers would compromise on property details for better location, research finds
Buyers are overlooking costly period home repairs, expert warns
Skipton Building Society expands high LTI lending criteria to support more homebuyers
