Homes on a new development in Shrewsbury have been snapped up by a single buyer who is now renting out all the properties - pushing prospective homeowners further away from the property ladder.
The entire block of 11 apartments and a terrace of three houses on the former site of a garage in Sutton road are now being advertised to let. The properties are still being built.
Some of the homes, known as Sutton Court and Sutton Court Mews, could be ready by the end of May and the rest in September.
Agents Monks, of Shrewsbury, confirmed the homes had all been sold to a single buyer. Charlotte George, of Monks, said: “We have now been instructed to let the homes. Lettings have not been taken up yet.”
Councillor Jon Tandy, who represents the Sutton ward, said the news had angered residents, who were disappointed with the development.
He said: “It’s not very good when there’s no affordable houses in that section and they have all been sold to one buyer.
“It’s been done just as a money-making scheme. The scheme is very out of keeping with the character of the area.
“Residents are up in arms over the whole development. They have crammed in as many as they can and at the same time they were sold before anyone could even look at them.
“How can young people get on the housing ladder and get anywhere in life if they cannot even buy a house if big companies are buying all the houses and letting them out?
“I think all developments in Shrewsbury should have a section of affordable homes,” he said.
Planning permission for the 11 apartments including a two-bedroom penthouse and the three-bedroom terrace houses, with en suites to the master bedrooms, gardens and parking was granted in October 2004.
Developers TC Homes were unavailable for comment.
By Rebecca Lawrence
23 Comments
This is a disgrace - the “affordable housing” dogma is an absolute joke. Some serious questions need to be asked about how this situation has come about.
So much for affordable housing1
It would be nice to think that some developers do have a modicum of integrity when selling theri properties. This is clearly all about the money!
This is typical of the farce that is buy to let where first timers & those wanting to move on at the lower end of the market are easily outbid by these greedy selfish people. No wonder there’s a housing crisis ! Still, as long as estate agents & the banks continue to rake it in aided no doubt by politicians, many of which are playing the same game I doubt if anything will ever change.
Developers with a sense of integrity !!! That’ll be the day…
Welcome to the world of greed we built for ourselves, where profit is king and integrity is a dirty word.
I think is a disgrace developers should not be allowed to do this. Those poor people trying to get on the property ladder dont stand a chance. Something should be done
That is absolutely ridiculous. Those are the same flats that have put a massive fence up in front of the shops. Whoever gave planning permission for it in the first place needs some sort of punishment, but then letting them be flogged off to some investor is just obscene. I wonder if the investor has anything to do with the builders? Affordable homes - what a joke!
British people need to wake up to the fact that buying a house isn’t the be all and end all of existence. Renting has never been cheaper compared to house prices, you will pay less rent per month than mortgage interest alone on the same property at the moment.
This means that the only advantage of buying would be if you are expecting significant capital gains. As house prices are heavily overvalued anyway compared to incomes and to other countries, they are likely to stagnate or fall in the next few years so anybody relying on making a quick buck from rising prices may well end up with egg on their face.
In any case most people are unable to realise theoretical capital gains on their houses because they need to live in them, it only advantages people who want to cash in and downsize on retirement.
If young people desperately want to own property they might be better off renting here and getting a mortgage to buy abroad where houses are cheaper and rent out that property to cover the mortgage.
I think all is fair in love and war. If you cant afford a property you should work harder and get a better paid job or don’t complain and rent for the rest of your life. why have an obsession in buying your own place any way. look at the Europeans they predominantly rent their primary residence
You can’t blame the developers this is the real world this is business there not here to make you happy. I’m sure the guy who has brought all the properties probably negotiated a good price and the developers in turn lost out on potential revenue, and I’m equally sure if 11 first time/private buyers got their acts together and actually put some offers in the developers would have sold to them. People talk and moan a lot about things like this, but they need to stop moaning and do something about it, otherwise yes they will always lose out to people who have a bit about them and take risks.
Controversial Lenny. I agree its just market forces. If people refused to pay such high rent the developer wouldn’t be able to make coin out of the venture, its their own fault.
And what exactly can people do about it? The gap is only ever going to get wider. Build affordable homes which have a covenant that says they can only sold in the first instance to first time buyers. It isn’t that complicated.
I can only assume that the last four comments come from people who already own a substantial part of their current property.
I hope the buyer has a long long long void trying to let them…
Don’t worry people. The crash will sort this mess out. Here’s some facts about property markets:
American: crashing
Irish: crashing
Spanish: crashing
Guess where we are going next? Good luck to the developer.
Find out more: http://forum.globalhousepricecrash.com
Don’t pay high rent - or what? Live in a tent?
Work harder? A teacher, following 3 years study cannot afford a starter home in Shrewsbury. Exactly how should they work harder?
Buying a house is not the be all and end all? Is that so? Do you own your house? Easy to say from the other side of the property gap…
Mr Angry has a point!
Did this person who has bought all the flats/houses to rent out as an investment patiently wait for the houses to be released to the general public and then buy them?
Sorry, one person has bought all of these and hopes to rent the lot out?
Sounds like an excellent opportunity to negotiate a nice rental discount.
Still, nice bit of hype for the developer to flog those “last properties” - until the rest come back on the market.
Griffo
I just wonder whether first time buyers want the best of both worlds?
They want to own a home, yes. But maybe they also want the plasma TV, the nice suite, the dishwasher, the king-size bed, the nice car at the same time. Well, sorry but it aint like that.
If you want a rung on the housing ladder, then buy what you can afford. The accessories will come with time and hard work.
When the property bubble bursts, which I am sure it will one day soon, and the negative equity years return, people will be grateful for the chance to rent houses like this !!!
When the economic tide turns watch how the profiteers demand our sympathy. Do whatever you can to put the boot in.
A shortage of affordable homes in Shropshire????
I have a flat that has been on the market for more then 12 weeks that is priced at the lower end of the market yet I have had no enquiries from any first time buyers.
Mr Angry, in many rich countries, such as Germany, Switzerland, Scandinavia, Netherlands etc most people rent houses, they don’t seem to be doing so badly do they? They just invest their wealth in other ways.
The British really are far too worried about ‘getting on the property ladder’, if you think property is too expensive, invest your money in other asset classes.
If people keep borrowing more and more to buy property even though they think houses are overpriced, this will only fuel the bubble and make matters worse. If people say ‘enough is enough’ and refuse to pay such stupid prices, they will have to fall.
The only real winners from rocketing house prices are the banks who rake in more interest payments. Why do you think they are so keen to raise the salary multiples they are willing to lend?
Mark Jones, you should bare in mind that tenancy laws in Germany, Switz, Scandinavia etc. all offer a great deal of protection and stability for the tenant, rents are less than half and the industry is highly regulated.
Over here, youngsters are at the mercy of amateur, bandwagon jumping BTL landlords - with unforgiving tenancy laws allowing them to through out tenants on two months notice without reason.
Yes, property is way too expensive - but renting in the UK doesn’t offer the same security as it does on the continent.
Hey Fredrick Blek! - that website you posted a link to is fantastic! - I recommend anyone looking to buy reads some of it’s pearls of wisdom!!