One of the arguments used for over-development is lack of supply. We have been aware of the fact that over recent years due to the availability and aggressive marketing of new homes, many older houses in Westhoughton have been slow to sell.
We believe that instead of approving every development that comes up, the brakes need to be applied so that Westhoughton can catch its breath and review its needs from a community and infrastructure point of view.
We believe that instead of approving every development that comes up, the brakes need to be applied so that Westhoughton can catch its breath and review its needs from a community and infrastructure point of view.
Westhoughton (BL5) Housing Market Review - week 20/10/08
| For Sale |
Price Drops |
For Sale > 6 mths |
For Sale > 3 mths |
Flats For Sale |
Rental Properties |
| 415 (-1) | 113 | 26 (+5) | 99 (-3) | 66 (-) | 101 (+3) |
The changes shown are for the last week. Some volatility in figures due to seller/buyer uncertainty. Five-fold increase in properties to rent since January - a sign of stalling sales.
Recession appears to be with us. There is little doubt that the once overheated property market is correcting. Nationally, the picture reflects a tougher market: mortgage approvals down to levels worse than the 90s property crash; credit harder to obtain (75% of mortgage products withdrawn as banks reassess risk and tighten lending criteria); house prices in decline (-12% YoY); the speculation driven buy-to-let sector in serious trouble; repossessions up as recent overstretched buyers are squeezed. Banks are failing under the burden of all of the debt. Given the runaway house price inflation of recent years it is clear that there has been a huge asset bubble: driven by the availability of cheap credit, rather than supply (builders now mothballing sites and laying off workers, as shares and land values plummet). It would appear that a prolonged crash bigger in scale than the 1990s is underway.
Update: 30 Oct 08 - Nationwide figures released today show a 1.4% MoM fall, down 14.6% YoY (-12.4% up to last month). This means the price of an average house was £158,872 - £30,000 less than a year ago. Auction sales figures are showing falls to be in the region of 30-35%. It is worth pointing out that in October 1998 the average house price was just £66,000; house prices, it would appear 'did get out of control', rising way beyond average salaries (completely unsustainable over the long term).
Media reports say that for the first time ever there are more than 1 million homes for sale in England and Wales, with an estimated 15 properties for sale for every 1 buyer. Estate Agents have record numbers of unsold homes on their books. The over-supply, tight credit and economic gloom now producing big price falls… Mortgage approvals for home purchase are tumbling - down 64% in August to 22,239.
The 'Credit Crunch' is actually a 'normalisation' of lending practices from the insane 'lend-anything-to-anyone-few-questions-asked', to lending based on ability to pay and shared risk (bigger relative deposits). The good news for first-time buyers is that with prices falling, contrary to the keep-prices-at-a-high-level 'shared equity' schemes, in time houses should become genuinely affordable. People viewing their houses as homes rather than investments will weather the storm. Sanity will have returned to the housing market.
Update: 2 Sept 08 - Desperate times! £1b fee based 'interest free' loan scheme on new builds, and Stamp Duty threshold change (£175k) to boost the housing market announced. First time buyers being encouraged to take on loans of up to £30,000, deferred for 5 years, as house prices tumble. Bonkers! Most commentators believe the housing market should not be interfered with and allowed to 'correct'.
Date: Wednesday, 10th September 2008 Westhoughton with Chew Moor forum took at Westhoughton High School. Agenda (10/9/08). Feedback is to be given on the 'Big Issues' raised at the last forum meeting, as well as there being a presentation on Community Safety issues.
A meeting which was not without controversy as locals expressed their frustration with yet more talk and not so much action. Row erupts at area forum (Bolton News). There was a presentation on planning proposals, and the need to allocate employment land - the question asked as to why so much 'employment land' in Westhoughton had simply been allowed to go to housing (Metal Box for example)? Is that planning?
The last forum - Monday, 16th June 2008 - received mixed reviews for new style forum. View minutes. Those that attended the forum were in for a surprise. A round table format with not enough tables! No open forum (so the import issue of the Sainsbury's £1m covenant release not aired). No review of the minutes or open forum responses from the March meeting - so no questioning of official responses. Some people left early, those that stayed took part in small group discussions… the idea was to feed into a plan to 'improve' Westhoughton with Chew Moor, through 'Post-it Note' brainstorming across issues such as Health, Crime, Prosperity, Environment, Education, Community. Once things got going it did appear that debate was stimulated as the theme board filled with 'Post-it Notes'.
We will have to wait 3 months before the voice of the people feeds into a 'plan' for Westhoughton. The jury is out. These forums are important in giving people the opportunity to air concerns and grievances; what will not be tolerated is if they stifle and dilute debate and are used to put key issues into the long grass.
Once, an area of 'Open Recreational Land' used by local residents, the Hoskers is being prepared for the forthcoming move by Westhoughton Cricket Club. Fenced off, work is well underway, though not without its problems! Great Crested Newts found, then flooding overspilling into residential areas in the wretched weather over recent months, causing delays and necessitating additional drainage.
With some long overdue decent weather in September, work at the Hoskers appears to be moving ahead, with much activity preparing and flattening the land. Drainage problems, which are more serious than first believed, are slowly being addressed. The Cricket Square taking shape.
In May work began with the humane capture of the Great Crested Newts (protected species) and other amphibians that inhabit The Hoskers. By July 5 species of amphibians were trapped (great crested, smooth and palmate newts, frogs and toads), with nearly 100 animals moved out of the site.
Once completed the preparation of the land began in earnest. The Hoskers became a building site. The scale of the project is deceptively large given the need to prepare and drain the land. HGVs will be commonplace. Noise, dust and disturbance can be expected for some time.
Though 'promised', there is no news on the provision of a proper footpath along the railway line - adequate for the human traffic that normally crosses the once open field. The Bolton Council has received significant sums for the land at the Hoskers and the release of the covenant at the Tyldesleys - money should be made available to address this need.
Plans to build 57 apartments on the site of Greenfields Social Club, Wigan Road were approved only to fall foul of the 'Credit Crunch. The cash-strapped developer pulling out. It will be very sad to see that yet another valuable social club could be lost to the developers.
Wingates Labour Club on the A6 was also lost recently to make way for apartments. Months on, it lies empty awaiting specialists to remove asbestos found after getting planning permission. Given the current economic climate, it seems unlikely that the flats will go ahead. Where they really needed? Local residents are bemoaning the loss of their local club and social venue.
Greenfields is the town's only true cabaret venue, serving a clientele quite distinct from Market Street; a popular venue for hire for parties, events and community functions. Sadly being run down… Its importance to locals underestimated by the Council.
26/8/08 - Do you want Aldi? - There would appear to be some 'kite flying' for Aldi, a political leaflet having been put out to assess desire for the supermarket, bemoaning the lack of choice? It should be noted that there is no new planning application in yet. It doesn't seem 'appropriate' for councillors to appear to be pushing the scheme.
30/5/08 - Interest in site from Supermarket. It is understood that Aldi are interested in developing the Greenfields site. The apartments developer, Bellway who seem to be in some distress on account of the credit crunch and overspending on landbanking, pulled out of the scheme realising that the apartments scheme was a non-starter. A new supermarket would entail a fresh planning application. What a pity some of the Sainsbury's covenant money couldn't have been used to take over the club and use it as a social and community facility.
30/4/08 - Still no word on Greenfields. Issues about protected land on the site remain unanswered. However, more significant, is the impact of the 'Credit Crunch' and the collapse of the housing market - particularly for apartments, where values appear to be plummeting (up to 50% on new build) and buyers seems to be disappearing. Buy-to-let, the market that has driven the glut in apartments is effectively 'dead'. Is the scheme viable anymore? It would appear that, for the parties involved, the numbers will need to be reassessed.
6/3/08 - Planning application approved (referred to Director for final decision). Westhoughton looks set to lose an important social and community venue.
It seems we are not alone…
A LEISURE centre in Oldham that has seen thousands of local residents pass through its doors is to close after 25 years – and be replaced by a housing estate. Ta ra the Tara?
2/7/08 - Following a question at the Towns' Forum. It would appear the developer - Bellway - have pulled out of the apartments scheme. Bellway, one of a number of building companies whose shares and market capitalisations have been tumbling - part of the problem being that land prices are falling sharply. There does appear to be a protective covenant on part of the Greedfields site (the car park), however, expect this to be lifted by Bolton Council for the right price. Discussions with Aldi are at an advanced stage. The club itself is clearly winding down, the compère and cabaret booker giving in one months notice. Many regulars now choosing to frequent Hindley Labour club for their entertainment.
The contentious planning application for a new Sainsbury's on the Tyldesleys Cricket Club site was decided at a Planning Committee meeting on 10th January 2008. The formal approval to come from the 'Director' with Government approval needed - it was hoped that it would be 'called in' for a Public Enquiry and proper public scrutiny. Minister Hazel Blears rubber stamped the application on 5th March 2008.
A Westhoughton issue decided by mostly non-Westhoughton representatives, with little knowledge or real interest in the town. No debate. Ignored: traffic concerns; loss of recreational land; local public opposition (2 petitions, 800 objectors); the Town Councillors' 'no' vote; affect on Town Centre traders... Misinformation and disinformation not questioned. A Sainsbury's consultation taken at face value.
The lack of proper debate and serious questioning on a matter so contentious and important quite astonishing. One voting councillor heard to say that shopping was recreation!
Given the amount of money involved, why wasn't evidence of viable business plans and agreements demanded? Sainsbury's development-Cricket Club move
Update 18/6/08 - Sainsbury's applying pressure
It seems that in spite of understandings and conditions to that effect, Westhoughton Cricket Club could be forced to vacate their home at the Tyldesleys in the autumn, in order to let Sainsbury’s bring forward the building of their store. The impatient retailer seems to now expect the cricket club to move to temporary accommodation whilst their new home is prepared and build. To add insult to injury, Sainsbury’s, bemoaning the economic climate, seem to want to renegotiate the deal done with Westhoughton Cricket Club, meaning they will have less money to spend on the new ground and facilities, and that they could soon face financial difficulties. News too that Sainsbury's wish to chop down the CO2 eliminating trees along Cricketers Way so that people can get a better view of the store and their wind turbines.
Update 24/9/8 - The Core Strategy plan for Bolton for the period 2011-2026 is in its final consultation stage (mid-October). This plan covers planning and development within the borough, with analysis and recommendations based on ongoing consultation. Bolton Council's website provides information about the Local Development Framework - Core Strategy. For further technical information see North West Regional Planning
One of the preferred options will see significant development at Cutacre at the site of the open cast coal mine but extending into surrounding Green Belt. It is not clear how much local residents there will be aware of this significant scheme.
A special Forum took place (6 Dec) to discuss Bolton Planning Strategy (LDF) for the next planning period - to 2020. The current UDP (council planning document) runs until 2011. Under it a lot of land surrounding Westhoughton is 'protected open land', i.e., it cannot be developed.
SWAN - as did other groups - fed into this process. Key points being that current housing targets are being exceeded, prematurely endangering open spaces surrounding the town.
Questions were raised about providing employment areas - significant that employment areas are being lost; brownfield sites giving way to housing.
We await the results of this consultation, and how new housing targets affect Westhoughton, its infrastructure, traffic, services and employment.
Leigh Road closure and roadworks details; contraflow scheme ongoing…
Very interesting programme highlighting the mess that the housing market has become. Incorrect, inflated property values (+15%) at The Land Registry; fraud and lies; the BLT free-for-all distorting the market and putting property out of reach of first time buyers; ineffective regulators turning a blind eye, complicit 'professionals'... Property lunacy!
Jeremy Vine's final comment: "If you've just bought then cover your ears because house prices have fallen for the last three months and are predicted to fall 35% over the next 5 years."
In a similar vein ITV's 'Repossession, Repossession, Repossession' told a similar story of an over-heated property market and overstretched buyers, living on credit cards and mortgage equity withdrawals.
Buyer beware!
Following a Developer's pulling out of Market redevelopment scheme... (public toilets requirement making it unviable!), there is good news that Council officials and local politicians have finally made a commitment to support, improve and boost the town's market.
A reprieve and hope for the remaining traders. Hopefully, new traders can now be found to replace those forced out by all the uncertainty of the last few years? Market revamp pledge (Bolton Evening News)
Money has been found to improve the inside of the market, now that the external aspect has been improved; traders have been promised marketing support.
Going the way of many local employment sites, Bolton Road Mill set to be demolished and a 95-home estate set to be built.
The developer free-for-all continues. Brownfield sites now exhausted... greenfield now threatened? Nightmare!
The recent interest rises and a credit crunch have begun to hit homeowners, many of whom are overstretched financially, as house prices have almost trebled in 10 years. A significant proportion of purchases are being made by the buy-to-let investor. Signs are that there is over-supply. Rental income not covering the expenses (mortgage, maintenance, fees). Many properties remain vacant (35% apartments vacancy rate). Signs around the world that a long overdue correction in property prices is gathering momentum.
Comment - old news now, but entirely predicable. The over-heated, debt-fuelled housing market had become the UK economy. Quite simply the bubble had to burst.
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