Coldharbour Lane, Brixton - news and updates

[CH1]

Taylor Wimpey were on Today in Parliament on radio 4 just now. Top people from TW squirming in front of a select committee trying to explain why extorting money from leaseholders they had sold housing to was ok. In brief TW realised that selling leaseholds meant they could coin it by upping ground rents in future. A clever money making wheeze.

Worth a listen. about half way through.

BBC Radio 4 - Today in Parliament

Why making money whilst giving nothing in return is great business practise that TW now realise was misguided.
Some of these property developers should be put up against a wall and shot. Thats how I felt after listening to them.

I saw the same thing on BBC Parliament channel just now. Radio 4 has highlighted the issue while back in "You and Yours" and "Money Box", see here BBC Radio 4 - You and Yours, Leasehold Flats, British Flowers, Smart Thermostats

Not sure if Taylor Wimpey's original offer to only negotiate with the original buyers still applies, maybe that was covered in the full select committee hearing.

Taylor Wimpey lease terms already incorporate steeply escalating grounds rents. That is built in. Seems bizarre that they can just sell on their freeholds without reference to the lessees. A bit of "dicing and splicing" by the look of it.

The same problem of dodgy leaseholds applies to "retirement homes" - though we don't have any of those in Brixton (yet).
As regards "The Edge" I imagine their lease terms will have escalating ground rents - but the buyers will have no remedy - unless they club together as a group and buy the freehold of their block (which seems unlikely).

 

[teuchter]

Now I've reached the age where the small ads in the Daily Express would advocate a truss for external support, I am bound to ask - how much support do these "bricks" provide?

None - that's not what they are there for.

 

[editor]

See the gates are already up and locked on the promised new public thoroughfare at the back of The Edge development.

 

[ChrisSouth]

See the gates are already up and locked on the promised new public thoroughfare at the back of The Edge development.

View attachment 159039

Isn't that because half of it is still a building site and people really shouldn't be walking through a building site? At present it looks as if it's gates locked on a route to nowhere.

 

[editor]

Isn't that because half of it is still a building site and people really shouldn't be walking through a building site? At present it looks as if it's gates locked on a route to nowhere.

You actually think there's going to be a public walkway there any time soon, even after every last element of the site is 100% complete?

 

[ChrisSouth]

You actually think there's going to be a public walkway there any time soon, even after every last element of the site is 100% complete?

I have no idea. But at present it's an inaccessible building site, so of course, at present, it's an inaccessible walk way. The picture you posted wasn't a picture of a gated and already locked promised new public thoroughfare at the back of the Edge development. It's a picture of gates and hoarding which are preventing people accessing a building site. That is all.

 

[editor]

I have no idea. But at present it's an inaccessible building site, so of course, at present, it's an inaccessible walk way. The picture you posted wasn't a picture of a gated and already locked promised new public thoroughfare at the back of the Edge development. It's a picture of gates and hoarding which are preventing people accessing a building site. That is all.

It'll be the exact same gates that will stop the public using the promised new thoroughfare. You can see that the private intercom is already installed.

 

[organicpanda]

they seem to only have a skeleton amount of builders there since Christmas and work on the two unfinished blocks has slowed done, wonder if they have run into cash-flow problems (would help with reducing the 'affordable' quota if it's still in existence)

 

[CH1]

they seem to only have a skeleton amount of builders there since Christmas and work on the two unfinished blocks has slowed done, wonder if they have run into cash-flow problems (would help with reducing the 'affordable' quota if it's still in existence)

One of the three blocks was supposed to be "affordable". Can't imagine the flats are selling like hot cakes with the current property price news. Still I said that about Brixton Square and I was proved completely wrong.

 

[CH1]

Their sales website shows 2 3 bed flats going for £699,000 - £709,000.
This is block A. The middle block B is also shown on the plan, but not block C which makes one wonder is that going to be Peabody or Metropolitan or somebody?

 

[organicpanda]

One of the three blocks was supposed to be "affordable". Can't imagine the flats are selling like hot cakes with the current property price news. Still I said that about Brixton Square and I was proved completely wrong.

according to their website they have 2 flats in block (Valentia Place end) at just under and just over £700,000 although judging by how many lights are on I don't think that many have moved in

 

[organicpanda]

damn your nimble fingers

 

[editor]

....but not block C which makes one wonder is that going to be Peabody or Metropolitan or somebody?

Wildly unlikely, I'd say.

£700k for a two bedroom flat wedged up against a railway line in Brixton is obscene. Still, that all-window design means that the residents of the Barrier Block can see straight straight into their pricey flats and watch them sup their champagne while looking out at the poverty around them.

 

[editor]

"...Making the apartments the perfect choice for investors."

Cunts.

Situated in the heart of popular Brixton, The Edge is the ideal location for anyone looking for convenient, stylish modern living.

Brixton is a popular and lively area of South London within the Borough of Lambeth. The Edge is located between Valentia Place and Gresham Road, a short distance from the Station and Tube, perfect for commuters.The Sales Pod is located under one of the iconic railway arches at the Valentia Place end.

Brixton is famous for its' live music, murals, market and cinemas, there is a strong social culture making Brixton a desirable place to live for the young professionals. There is a high demand for rental accommodation within the area, making the apartments the perfect choice for investors.
For a superb brand new home in a location that offers everything you need for modern living, The Edge could well be the destination for you!

 

[organicpanda]

£2,000 p.m rent for a 2 bedroom flat in the edge nice little earner if you have a spare £700k lying around

 

[urbanspaceman]

£2,000 p.m rent for a 2 bedroom flat in the edge nice little earner if you have a spare £700k lying around

Actually, I don't find it such an attractive yield. £2,000 per month translates to £24k per annum, which is a 3.4% gross yield on £700,000. But this is the gross figure - there will be many outgoings (agent's fees, maintenance & repairs, etc.) which will easily reduce it to 3%pa or lower, taxable. So the rental income is about the same as borrowing costs - ie no profit. What the landlord is really doing is taking a punt on capital appreciation, hoping to cover ongoing costs with rent, and cashing in later when selling the flat, presumably at a big profit. This ploy has worked very well in the past, but currently property prices are flat or falling in London, and who knows what the effect of Brexit will be ? The risk/return proposition is awful.

If I did have a big lump sum lying around, I'd put it into a personal pension, claim the associated tax refund, and invest it all over the world, for higher returns, lower risk and less work & worry.

 

[Mr Retro]

What the landlord is really doing is taking a punt on capital appreciation, hoping to cover ongoing costs with rent, and cashing in later when selling the flat, presumably at a big profit. This ploy has worked very well in the past, but currently property prices are flat or falling in London, and who knows what the effect of Brexit will be ? The risk/return proposition is awful.

I think when Brexit settles down into whatever it will be London property prices will go into overdrive.

Simply having certainty will be a big catalyst to push up prices.

Also, When the EU cohesion policy is no more (and there will be nothing that come close to filling it’s void imo) the regions will really suffer and this will push more people to the cities pushing up property prices.

Another reason Brexit is a disaster.

 

[Gramsci]

One of the things about London is that it became a playground for the rich after Thatchers "Big Bang" of the City. The resurgance of London as an off shore financial centre for global capitalism.

This was not inevitable. The consequences of this have been mixed for the working class in London. Changes in the economy ( loss of jobs in docks for example) have not led to alternative economic strategy of affordable housing and emphasis on light industry. Instead the finance sector has been given everything it wants. Including being bailed out when they fucked up.

A plus side of Brexit could be that London reorients itself away from looking after the rich and powerful and looks at how a city can be for all. Not just the well off with the poor being expected to be grateful for crumbs.

Coming from Plymouth one of the things that drove Brexit is that there working class have been stuffed since Thatcher.

I was against Brexit a I didn't like the anti immigration side of it. It was also being pushed by the right.

 

[CH1]

I think when Brexit settles down into whatever it will be London property prices will go into overdrive.

Simply having certainty will be a big catalyst to push up prices.

Also, When the EU cohesion policy is no more (and there will be nothing that come close to filling it’s void imo) the regions will really suffer and this will push more people to the cities pushing up property prices.

Another reason Brexit is a disaster.

Do you not think that the London property market is a Ponzi Scheme? It goes up because it goes up - and a lot of marketing is committed to making this happen. At some point it ought to end up with unfinished empty blocks - like Spain and Ireland when they went on the Euro at zero percent interest in 2003.

 

[Mr Bim of Bar]

Well Tupps cheese and wine bar opp Barrier Block didn’t last 5 mins did it.

 

[CH1]

Well Tupps cheese and wine bar opp Barrier Block didn’t last 5 mins did it.

It wasn't supposed to. They actually said they were a temporary use up to Christmas on their window.

 

[Mr Bim of Bar]

Well Tupps cheese and wine bar opp Barrier Block didn’t last 5 mins did it.

It wasn't supposed to. They actually said they were a temporary use up to Christmas on their window.

Ohhhh ok, wondered why they closed down so fast.

 

[Mr Retro]

Do you not think that the London property market is a Ponzi Scheme? It goes up because it goes up - and a lot of marketing is committed to making this happen.

It's a legitimate question. I think not for 2 reasons: We are nowhere near the saturation required for a Ponzi, there simply aren't enough houses in areas people want to live in. Secondly you don't end up with something completely useless like a lock up full of diet suppliments nobody is coming on the bottom of the pyramid any more to buy from you. You end up with a flat or house.

Will we end up with individual new build block with many empty units in some areas because that area has become too saturated? Probably. A 700K flat looking at the Barrier Block would be a candidate. But in London, taken as a whole? No.

 

[CH1]

There are already a few people living in Block A at "The Edge". Not sure if they are eager purchasers anxious to live on a building site in case of being left behind - or maybe upper class property guardians?

 

[editor]

There are already a few people living in Block A at "The Edge". Not sure if they are eager purchasers anxious to live on a building site in case of being left behind - or maybe upper class property guardians?

Thanks to the ridiculous floor-to-ceiling windows and balconies affording commanding views over the adjacent council estate, I can see directly into their living rooms. I'll report back later.

 

[Mr Bim of Bar]

One of the three blocks was supposed to be "affordable". Can't imagine the flats are selling like hot cakes with the current property price news. Still I said that about Brixton Square and I was proved completely wrong.

Thanks to the ridiculous floor-to-ceiling windows and balconies affording commanding views over the adjacent council estate, I can see directly into their living rooms. I'll report back later.

If you move into a new build on (First Phase) you generally get the apartment at a cheaper price as the developers are testing the water to feel the demand. If it’s a high demand then the price will go up on the 2nd phase, that’s usually why you see people have moved in whilst building work is still ongoing.

 

[editor]

View attachment 160857

If you move into a new build on (First Phase) you generally get the apartment at a cheaper price as the developers are testing the water to feel the demand. If it’s a high demand then the price will go up on the 2nd phase, that’s usually why you see people have moved in whilst building work is still ongoing.

That "cheaper" price is still most people's definition of totally unaffordable!

 

[Mr Bim of Bar]

That "cheaper" price is still most people's definition of totally unaffordable!

Problem is that if they were unaffordable they would be empty, doesn’t matter how many £600,000 apartments they build in Brixton they all get sold.

 

[editor]

Problem is that if they were unaffordable they would be empty, doesn’t matter how many £600,000 apartments they build in Brixton they all get sold.

To make it clearer. They are unaffordable to the majority of the existing local population.

 

[CH1]

Problem is that if they were unaffordable they would be empty, doesn’t matter how many £600,000 apartments they build in Brixton they all get sold.

I agree with editor basically.

This is what the left call financialisation of the housing market. Even a right-wing Labour journalist I know is fed up of such flats being marketed in the Far East as buy to lets.