Work continues on Blackburn flats despite credit crunch
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| DETERMINED: Margo at the site of her planned development |
A BUSINESSWOMAN is determined to press on with a multimillion pound housing complex, despite UK-wide warnings over the property market.
Experts say too many flats have been built nationwide and prices are coming down because of a lack of demand.
And the global credit crunch - which was sparked by US banks lending too much money to customers - is also making it harder for would-be buyers to get mortgages, because lending restrictions have been tightened.
Increased interest rates mean investors who buy flats to rent out are finding the rental income doesn't cover their mortgages, and they are then struggling to sell the homes.
But Margo Grimshaw said that while gloomy forecasts of a credit crisis did concern her, she would "cross her fingers and smile" as work on her £15 million Blackburn town-centre project continued.
She said: "It is concerning, there's no doubt about it. We couldn't have predicted it at the time.
"But at the moment we seem to be getting a healthy level of interest.
"Our prices aren't pitched too high, and the fortunate thing about us is we are the first, so Blackburn's housing market isn't overstretched.
"Cities like Leeds and Manchester have built too many already."
The 79 apartments will cost between £100,000 and £200,000, with five luxury penthouses costing £285,000 each.
Builders are also creating a car park for 80 vehicles on the Market Street Lane site.
Also in the pipeline is the neighbouring £70 million Cathedral Quarter development, which will create another 135 flats. Work on that scheme is set to begin on site in 2009.
Ms Grimshaw said she had been contacted by buy-to-let investors, but said interest had also been strong from private buyers.
But members of the council's planning committee recently said developers were "obsessed" with building flats, despite a lack of demand.
Peter Bolton King, the chief executive of the National Association of Estate Agents, said: "Hindsight is a wonderful thing, but over the last 12 years or so planners have been very willing to approve significant developments of flats.
"In a number of areas this has led to over-supply and the person who owns the flat can't rent it so they put it on the market."
And Blackburn estate agent James Whitehead said anyone expecting to sell upmarket flats in the borough was "living in cloud cuckoo land".
He added: "I just don't think there is the market for new flats in Blackburn, and I don't know how they will be filled."
4:02pm Tuesday 15th April 2008
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CommentPosted by: I won't be having one, Langho on 5:26pm Tue 15 Apr 08
Nearly £300k to look down on Margo's remaining grotty pubs and watch the winos wander by? Is she real? Margo is the town biggest hypocrite - queen of the roughest pubs for years only to come out all holier than thou about how morals have gone down the toilet. I for one will have a slight wry smile when I see her pipe dream disappear over the next 12 months. Perhaps she can get some DSS to use their housing benefit to pay for one of the apartments?
Nearly £300k to look down on Margo's remaining grotty pubs and watch the winos wander by? Is she real? Margo is the town biggest hypocrite - queen of the roughest pubs for years only to come out all holier than thou about how morals have gone down the toilet. I for one will have a slight wry smile when I see her pipe dream disappear over the next 12 months. Perhaps she can get some DSS to use their housing benefit to pay for one of the apartments?
Posted by: Barrie, Accy on 6:03pm Tue 15 Apr 08
Stick to What you know Margo!
Stick to What you know Margo!
Posted by: Me, Blackburn on 10:45pm Tue 15 Apr 08
Please, £300k for a flat in Blackburn town centre or a nice house in Tockholes hmmmm now I wonder which one id choose.
But not as unrealistic as the moron selling the church converted into a house on Bentham rd mill Hill For £595k. Thats right £595k For a house with no propper garden and in mill hill to boot.
Makes Margos houses appeal.
Later.
Please, £300k for a flat in Blackburn town centre or a nice house in Tockholes hmmmm now I wonder which one id choose.
But not as unrealistic as the moron selling the church converted into a house on Bentham rd mill Hill For £595k. Thats right £595k For a house with no propper garden and in mill hill to boot.
Makes Margos houses appeal.
Later.
Posted by: Me, Blackburn on 10:45pm Tue 15 Apr 08
Please, £300k for a flat in Blackburn town centre or a nice house in Tockholes hmmmm now I wonder which one id choose.
But not as unrealistic as the moron selling the church converted into a house on Bentham rd mill Hill For £595k. Thats right £595k For a house with no propper garden and in mill hill to boot.
Makes Margos houses appeal.
Later.
Please, £300k for a flat in Blackburn town centre or a nice house in Tockholes hmmmm now I wonder which one id choose.
But not as unrealistic as the moron selling the church converted into a house on Bentham rd mill Hill For £595k. Thats right £595k For a house with no propper garden and in mill hill to boot.
Makes Margos houses appeal.
Later.
Posted by: Kevin, Colne on 10:49pm Tue 15 Apr 08
I was interested in the comment made by the developer that "We couldn't have predicted this at the time".
I am sorry but the credit contraction was as sure as night follows day. All they had to do was read John Kenneth Galbraith's book 'A short history of financial euphoria'.
Folks who have seen through the phoney boom based on credit expansion, the usual nonsense from politicians, the blatant hype from those with a vested interest in the property market and the ramping by the media (the BBC being a prime peddler of tripe) will have long ago taken steps to protect themselves from the current crunch.
Those who accepted the received 'wisdom' without serious question or independent thought might well be in for some hard times.
Experience is a great teacher, but sends in hefty bills.
I was interested in the comment made by the developer that "We couldn't have predicted this at the time".
I am sorry but the credit contraction was as sure as night follows day. All they had to do was read John Kenneth Galbraith's book 'A short history of financial euphoria'.
Folks who have seen through the phoney boom based on credit expansion, the usual nonsense from politicians, the blatant hype from those with a vested interest in the property market and the ramping by the media (the BBC being a prime peddler of tripe) will have long ago taken steps to protect themselves from the current crunch.
Those who accepted the received 'wisdom' without serious question or independent thought might well be in for some hard times.
Experience is a great teacher, but sends in hefty bills.
Posted by: karl pistol, blackburn on 12:33am Wed 16 Apr 08
The flats are worth 30K[quote]quote[/quote] max, anyone paying the asking price will only sell for re-sell later at a discounted price. blackburn does not have a ciy centre living culture However trying to create one is absurd. Salaries in Blackburn do not support local house prices that have left Blackburn Home owners already stretched. Get real with the prices, this is a crazy development in a dying town centre. Recession is looming. let see whose right!!
The flats are worth 30K
quote
max, anyone paying the asking price will only sell for re-sell later at a discounted price. blackburn does not have a ciy centre living culture However trying to create one is absurd. Salaries in Blackburn do not support local house prices that have left Blackburn Home owners already stretched. Get real with the prices, this is a crazy development in a dying town centre. Recession is looming. let see whose right!!
Posted by: CityBoy, Square Mile on 11:28am Wed 16 Apr 08
[quote]And the global credit crunch - which was sparked by US banks lending too much money to customers - is also making it harder for would-be buyers to get mortgages, because lending restrictions have been tightened.[/quote]
The credit crunch was emphatically NOT caused by US banks lending too much money to customers.
Lending restrictions for [italic]those with good credit[/italic] have not been tightened.
The supposed "credit crunch" only applies to those who have a higher than average risk of default.
Quite the opposite to those who do not have credit card debt and have reasonable assets.
I've just been offered loan 5 times income for a mortgage.
There is no credit crunch for low risk borrowers.
There are still plenty of buy to let mortgages too.
And the global credit crunch - which was sparked by US banks lending too much money to customers - is also making it harder for would-be buyers to get mortgages, because lending restrictions have been tightened.
The credit crunch was emphatically NOT caused by US banks lending too much money to customers.
Lending restrictions for
those with good credit have not been tightened.
The supposed "credit crunch" only applies to those who have a higher than average risk of default.
Quite the opposite to those who do not have credit card debt and have reasonable assets.
I've just been offered loan 5 times income for a mortgage.
There is no credit crunch for low risk borrowers.
There are still plenty of buy to let mortgages too.
Posted by: Streetwalker, Rugby (ex Blackburn) on 7:23pm Fri 18 Apr 08
Maybe some pimps will be interested in them! They can then watch over their 'workers' plying for trade in Mincing Lane and Clayton St.
Maybe some pimps will be interested in them! They can then watch over their 'workers' plying for trade in Mincing Lane and Clayton St.
Posted by: jean, scotland on 3:21pm Sat 19 Apr 08
good luck to you margo ignore all these idiots
good luck to you margo ignore all these idiots
Posted by: modan, west yorkshire on 1:25pm Sun 20 Apr 08
Over the last century or so property prices have always gone up,only the rains come down,good luck Margo dont't listen to these idiots,you are doing Blackburn proud like JACK WALKER,TOMMY BALLS,JACK STRAW,LORD ADAM PATEL WHO HAVE PUT THE TOWN ON THE MAP.Blackburn regeneration is progressing well,with the new bridge under completion on Bolton Road,The Mall shopping centre expansion,the Cathedral plans,plans for new Hotels,Courts,the completion of orbital route,the town famous for it's King George Hall,the Cathedral,Ewood Park,retail parks at Audley and Wkitebirk,the completion of new hospital,soccerdome,
multi-screen cinema,the M65 link with M6 and M60 and new housing developments in Infirmary etc etc.These are are exciting times when Blackburn regenration is bringing more new developments in the town with public and private sector investments funding more new projects in the town.Blackburn is on target like some major towns and cities in UK with modern 21st century landscape.
Over the last century or so property prices have always gone up,only the rains come down,good luck Margo dont't listen to these idiots,you are doing Blackburn proud like JACK WALKER,TOMMY BALLS,JACK STRAW,LORD ADAM PATEL WHO HAVE PUT THE TOWN ON THE MAP.Blackburn regeneration is progressing well,with the new bridge under completion on Bolton Road,The Mall shopping centre expansion,the Cathedral plans,plans for new Hotels,Courts,the completion of orbital route,the town famous for it's King George Hall,the Cathedral,Ewood Park,retail parks at Audley and Wkitebirk,the completion of new hospital,soccerdome,
multi-screen cinema,the M65 link with M6 and M60 and new housing developments in Infirmary etc etc.These are are exciting times when Blackburn regenration is bringing more new developments in the town with public and private sector investments funding more new projects in the town.Blackburn is on target like some major towns and cities in UK with modern 21st century landscape.
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