A developer has stopped building upmarket homes in southeast England because they are becoming too difficult to sell. Other developers operating in the region are issuing profit warnings and offering a widening range of incentives to attract buyers.
Developer Country & Metropolitan announced it had withdrawn from the premium housing sector in the south of England because there were too few buyers able to afford a home valued at GBP300,000 (HK$4.2 million) or more.
Instead, it will concentrate on building homes in the GBP100,000 to GBP300,000 bracket.
In April, another house builder, Countryside Properties, warned its profits would be hit by a downturn in the market for homes valued at GBP300,000 or more.
At the other end of the spectrum, the north of England has become a hot spot for developers because demand for low to medium-priced homes there is strong.
Developers are offering more incentives to attract buyers.