New homes scheme on ice

Aug 6 2008 by Tony McDonough, Liverpool Daily Post

A HOUSING development that would have created almost 200 new homes in Warrington has been shelved due to the credit crunch.

The former G&J Greenall’s Distillery, on the edge of Stockton Heath, had been granted outline planning consent for a total of 195 family homes and 60-bedroom accommodation for the elderly.

The end value of the scheme would have been worth tens of millions of pounds, but because of the credit crunch it will be put on ice for at least 12 to 18 months.

G&J Greenall had instructed commercial property agents at Knight Frank to market the development opportunity to housebuilders throughout the UK.

John Broadbent, partner and head of residential development at Knight Frank Manchester, said: “Given the setting of the site and the established residential market in Stockton Heath which borders the site, we are confident that we will be able to conclude a sale once things recover fully over the course of the next 12-18 months.”

Michael Bibring, director at G&J Greenall’s said: “Having assessed the current market, we feel there is no rush in trying to sell this site and would rather withdraw it from the market until there is a positive change.

“This site offers a great development opportunity and we expect a sale once the market has recovered.”

In recent weeks most of Britain’s major housebuilders, including Barratt and Redrow, have reported plunging sales of new homes.

Most developers have now shelved indefinitely plans to build new homes.

The problem has been caused by the credit crunch which is one year old this week.

This has impacted on people looking to borrow to buy homes.

Ian Goalen, office senior partner for accountants KPMG in Liverpool, said: “I don't think there is any denying that the impact of the credit crunch has finally hit home across the region.

“Businesses across Merseyside are now feeling the effect of this so-called perfect storm of rising inflation, tightening credit conditions and plummeting consumer confidence.”

THE credit crunch one year on – Merseyside experts and professionals give their view – see Pages 8-9.

tonymcdonough