19-11-2007
City centre developments on hold ahead of growing crisis
The onset of a crisis in the UK's buy-to-let sector is leading to a number of city centre housing developments being placed on hold, it has emerged.
Reports by the Financial Times have revealed that a number of new housing developments in locations such as the midlands and northern parts of the country are being affected by a decline in demand for residential investment.
"The recent tightening of lending criteria by the major building societies has had a material impact on the buy-to-let market," said Steven Stone, chief executive of Crest Nicholson, a firm of house builders.
Hugh McGuiness, sales director at Dandara, added: "We will release the next phase of our land bank sometime in the new year. It might be a little later now than it would have been."
Dandara is a construction firm specialising in the development of city centres.
In related news, the Financial Times has also reported that, across the UK, the Countrywide chain of estate agents is to close a number of branches.
Simply Business offers buy-to-let mortgages and comprehensive insurance for landlords.