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Last Updated: Thursday, 25 October 2007, 12:06 GMT 13:06 UK
Big fall in prices of some flats
By Anouk Curry
Producer, The Truth About Property

For Sale sign
Buyers of some flats appear to be losing money when they sell
Significant price falls in a number of new build flats in Manchester, Birmingham and Leeds have been uncovered by a BBC series on property.

In one block of flats called Aspect 14, on the edge of Leeds city centre, one owner has lost as much as 85,000 on a flat in 18 months.

Others have seen the value of their flats fall from 189,000 to 131,000 in two-and-a-half years.

The majority of the last 10 sales in the block have seen significant losses.

'Fine investment'

At City Island, another Leeds development, flats have sold for up to 50,000 less than they were bought for.

One property investment company that promoted the City Island development in the past is called Inside Track.

"City Island was a fantastic scheme," the firm's chief operating officer Anthony McKay told the BBC TV show The Truth About Property.

"City Island itself has won a number of major awards.

"It rents well - the rental coverage is high with respect of the mortgage payment, so in the medium to long term it'll be an absolutely fine investment.

"Do I believe that some people have sold some of their investments?

"Yes, they have and I know that they have sold them at below some of the prices that we market them at."

Yet other apartments in the block have gained value and been resold at a profit.

In Birmingham, blocks of flats that have seen price falls include The Royal Arch Apartments on Wharfside Street and Centenary Plaza on Holliday Street.

There, one owner lost more than 50,000.

Other flats in the blocks have gained value, suggesting it depends very much on which flat you buy in a given block.

In Manchester, Blantyre Street flats have seen a reduction in some sale prices, by as much as 40,000, as has Deansgate Quay.

The next edition of The Truth About Property is on BBC 2 on Thursday 25 October at 2000 BST.



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