Concern over slump in sales at new development
PUBLISHED: 16:49 25 April 2008 | UPDATED: 10:16 11 August 2010
SALES AT the new Barking Central housing development are grinding to a halt as Barking is listed among London s riskiest repossession hotspots. Experian, a major credit rating company, has listed Barking among the three London boroughs in which repossess
SALES AT the new Barking Central housing development are grinding to a halt as Barking is listed among London's riskiest repossession hotspots.
Experian, a major credit rating company, has listed Barking among the three London boroughs in which repossessions of homes are most likely to hit households which have borrowed within the last 12 months.
According to the report, those on lower incomes will not be able to resist the rising cost of borrowing money, coupled with falling house prices.
In the wake of the recent credit crunch, developers at Barking Central are offering incentives to stop the sales slow-down.
After all of the 246 apartments in phase one of the new development have been sold, sales in the second phase have started to slow down.
Half of the 272 new units have been sold, but senior regeneration manager, Peter Green, at Redrow Regeneration, said: "We are worried because it has affected us in the same way it has affected any other developers in the borough.
"We have had a sales rate of two to three units a month.
"The normal sales that you would expect would be two or three per week.
"We offer sales packages, like furniture packages, and try to help with equity and legal issues. But we have not reduced the prices."
He is confident that the development will not suffer badly from the crisis, and says he thinks that there are people who have money to buy, but are waiting because they do not have much confidence in the market.
He said: "The greatest risk probably lies with the second-hand market, which is geared towards families.
"The new developments are one or two bedroom units, and they attract individuals from outside the borough who would like to live in a cheaper area.
"It's opening up to people who bring wealth into the borough."
The ambitious £100m development is creating hundreds of new private and affordable homes, in Barking town centre and the surrounding area.