Land value slumps
Published 2 Feb 2012 09:30
The former Hermitage Academy site has dropped over £3 million in value in less than four years.
The now-vacant land was valued at £8.75 million by housing contractor John Dickie Homes (JDH) in 2008. However, a downturn in the housing market forced the company into administration, resulting in their withdrawal from the sale.
Last week, councillors confirmed that the value of the land had decreased as a result of the economic recession, with a maximum of £5 million expected in return for the former school site.
A spokeswoman for the council said: "JDH and the council previously entered into an agreement for JDH to purchase the site of the former Hermitage Academy.
"This was at the time of a buoyant housing market. However, the market subsequently deteriorated significantly, and when JDH failed to settle the purchase price on the due date the council withdrew from the contract.
"The current value of the site, taking into consideration the condition of the housing market, is likely to be in the region of some £5 million. The value may be affected by its use for housing development and any possible costs relating to the site layout and ground conditions."
FULL STORY IN THIS WEEK'S ADVERTISER
This article appeared in Helensburgh Advertiser 02 Feb 12
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