Significant price falls in new apartments

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by Kay Murchie

According to the BBC TV show, The Truth About Property, considerable price falls in some new build apartments in Birmingham, Leeds and Manchester are being observed.

Buyers of some flats are losing money when they sell. One owner in a block of flats called Aspect 14, on the outskirts of Leeds has lost £85,000 on a flat in just 18 months. Furthermore, others have seen the value of their flats fall from £189,000 to £131,000 in 2½ years.

Another Leeds apartment development called City Island, flats have sold for nearly £50,000 less than they were bought for. Inside Track was the property investment company that promoted this development and, Anthony McKay, the group’s chief operating officer said City Island has won a number of prestigious awards.

He added that the rental coverage is high with respect of the mortgage payment, so it should be a good investment in the medium to long-term.

Mr McKay added that he is aware that some people have sold some of their investments at below some of the prices they were marketed at. However, he continued that other flats in the block have gained value and been resold at a profit.

Two developments in Birmingham called The Royal Arch Apartments on Wharfside Street and Centenary Plaza on Holliday Street have also noted price falls of approximately £50,000.

Blantyre Street and Deansgate Quay developments in Manchester have also noted a reduction in some sale prices, by nearly £40,000.

The 3-part series started on Thursday 18 October at 8.00pm on BBC 2.