Downturn means changes to housing schemes

PLANS for two major housing developments are being revised because of the downturn in the housing market.

Bloor Homes was given permission for a 245 home development on land off Grange Lane, Wolstanton, in 2002, as part of a scheme to create a link road joining Grange Lane with the A500.

And last year, Barratt Homes had plans to build 48 homes at Burgess Brook, in Keele Road, Newcastle, passed by councillors.

But both firms are now in talks with Newcastle Borough Council to reduce the number of apartments they want to build as part of their developments.

The companies say the move is in response to the weak housing market and what they say is a fall in demand for apartments nationally.

Bloor homes has scaled back the proposed number of apartments at its development from 49 to 24, instead, opting to build more three and four bedroom homes.

"It now wants to build 240 properties, five fewer than originally planned.

Barratt will still build 48 homes as originally planned, but is reducing its total number of apartments from 18 to nine.

Mortgage experts believe apartments are struggling to sell because people are more attracted to three and four bedroom homes, which in some cases are selling for the same price as apartments.

Mark Ferneyhough, mortgage adviser at estate agent Reeds Rains, in High Street, Newcastle, said: "The problem with apartments is that people need a big deposit to buy them.

"For the same price as a new build apartment, you can pick up a three-bedroom terrace house which is more mortgageable and proving to be a much bigger attraction for buyers at the moment.

"Overall, we are selling a lot of properties at the moment and as far as we're concerned, the housing market is not as bad as it's being made out to be.

"Family homes remain in high demand but the apartments we have are just not moving."

Last week, Barratt West Midlands reported a 24 per cent increase in visitors to its developments over the last 12 months.

And a spokesman for Barratt homes said they were still confident the homes they were building would sell, despite the tough economic circumstances.

He said: "We have recently submitted an application to alter the mix of homes at our Burgess Brook development in Newcastle.

"The new design will provide a wider choice of properties including two, three and four bedroom houses, fewer apartments and some coach house properties.

"We feel this better meets the demands of the local market and provides a more affordable range of homes."

UK property sales between December and February remained at their lowest level in at least 31 years, according to the country's surveyors.