To want to sell and move despite cost of living crisis?

[CharlieD2020]

We currently have a 3 bed semi that we renovated 3 years ago. We moved in just a couple of months before Covid hit. We love the house, but there are two issues with it. The first issue is space (we'd like a 4th bedroom and we can't extend or reconfigure to make that happen, and there's nowhere for me to be able to work from home very well, which is needed now that I go back from mat leave soon). The second issue is location. We're in an expensive city and in order to afford that, we couldn't be picky on location. So we're on a really busy road (think a main artery road into a busy city). For me, the location is the biggest issue. I could get around the space issue (we could put an office in the garden etc) but I just don't feel relaxed with so much traffic going past all of the time. I hoped I'd feel different but I'm a village person really. I like the amenities of a city but now we have a 1yo I'm realising how much I long for her to have a more leafy upbringing. My DH likes the city life but is happy for us to move to a nearby village, so that we are still close to the city but it satisfies my desire for more greenery and a village community feel for our family.


We've just had an estate agent over to value our house and are now seriously considering putting it on the market, but is this crazy? For context we currently have a mortgage of £770 a month for a house worth £575,000 due to having a large deposit. Our household income is about £3,200 pcm after tax. It feels like we could up our mortgage a bit as we are thankfully able to save a fair bit each month atm and if we wanted to get a 4 bed house in the village we love, it would be quite pricey and extremely competitive.

But is upping a mortgage and paying £20k+ in stamp duty and legal fees on a move a ridiculous thing to do in the current climate? I'm aware that interest rates are likely to rise soon but I think our mortgage is transferable. It's fixed for another couple of years at a low rate. Estate agent thinks we could sell well. Other than interest rates, and higher costs for food and energy etc, is there anything else we should be considering in regards to selling and buying property?

On one hand, I think we should stay here and enjoy the renovated house properly and stay put for another couple of years. On the other hand, we know we want to move before our 1yo starts school, so I feel like now is as good a time as ever (whilst I'm not pregnant and before we look to add another baby). And maybe if the next house was of a similiar value to our current house, it wouldn't make much odds?

AIBU to think there's never a perfect time to move, so now would be fine?

[Maroon85]

If you have 3 bedrooms, why can't one be used as a home office for you?
What is the plan regarding childcare once you return to work?
I feel like upping your mortgage on an income of £3200 might make things tight

[CharlieD2020]

Sorry - I calculated wrong based on me going back to work. Our monthly income after tax will be about £4,000. We have family staying very regularly so need to keep a double bed in spare room for that. I'll be moving a desk in there so I can wfh there and this will be a squeeze but doable. But once we have a second baby and they're out of our bedroom, we will really struggle with the current bedroom situation.

[BalloonsAndWhistles]

I’d stick it out for a bit if I was you.

[Fairisleflora]

Which shows why stamp duty is such a stupid tax. It’s a tax on moving house. The consequence of this tax is that people stay in homes which are no longer appropriate for them, or people don’t take jobs in other cities as they can’t afford to move house. And people who move house more often get charged more than people that don’t. Why is that fair?

Scrap stamp duty and make up the difference by increasing council tax.

[lassof]

Next few years will be bumpy. Move now, then you have future proofed.

[Goldfishmountainclimber]

How will things be financially if you have a second child and are on maternity leave followed by childcare costs for two children? Could you afford the increased mortgage costs during this period?

I think that the two most expensive periods in child rearing are the preschool years (childcare costs) and the university years (if they choose to go).

[CrapColdCoffee]

I'm in a similar situation, 3 bed semi, DH now needs an office space. 2 small DC. We were going to move but our house is located on a quiet road next to amenities and we fully renovated it, so we might just put a garden office for DH. Are there any green areas and parks near you? Sorry can't really advice as we're pondering the same, but it is only a space issue for us, not location. Have you looked at other houses you might like, I was slightly put off with the sizes of the extra bedroom and small gardens.

[CrapColdCoffee]

Good idea to check the schools near the houses you might like as well.

[CharlieD2020]

Hmmm, interesting points, thanks all!

We actually had a viewing at a house in the village we love the other day. Really nice but zero curb appeal and no opportunity to add value in the future, which is off putting to us. Estate agents have said the market is slowing down a little (more so for houses over the £750k bracket) but that we'd still need to have sold our house to really stand a chance of securing anything that comes up on the market. So it's like we have to make a decision to sell, accept an offer, and then hope a great house comes up very soon. The UK housing system frustrates me.

We do have some green spaces here, and nice neighbours - but no nearby children or young families, schools are okay but the best school is in the neighbouring village I'm really shooting for.

Really helpful point about childcare costs. We will be putting DD in nursery 2 days a week and my mum will have her 1 day a week. It's £65 per day. We're currently overpaying on our mortgage by £200 per month so can stop doing that to save some money over the expensive preschool years (realise we're fortunate to be able to do this).

[Maisa45]

We've just sold our house and are currently house hunting. I think there is rarely a perfect time to move and you just have to bite the bullet sometimes. We've been wanting to move for about two years but kept putting it off for various reasons and I'm glad we're doing t now because I think once you have the itch it's hard to feel settled in your home.

[GetThatHelmetOn]

Yes, it would be crazy, especially as I suspect you currently have a fixed rate mortgage at low interest and you will be moving to one with a very high interest and all for what? Having not much money to spend as a family just to have room for the visits?

if it helps, everyone gets a lot of visits when single but not many (or none at all) once you are constrained by the needs of a baby/toddler.

[GetThatHelmetOn]

Sorry, not “when single” but “when child free”.

[thewhatsit]

I don’t think you are unreasonable at all.

The next few years will be difficult but life goes on. You just need to make sure that you have spare capacity to shield you from any price shocks.

If you are buying this year you might face the prospect of negative equity for a period. Other than the mortgage side of it I don’t think this “matters” if you love the house and can see yourselves being there long term. If you move somewhere as a stop gap the coming recession may mean that the 3 years you plan become 8 etc so I don’t think that would be a good idea.

Moving near good schools is always a good idea just make sure you don’t stretch yourselves too much given inflation and make sure that, if the worst came to the worst, you’d be happy in the house for a long, long time.

As we all learnt in lockdown, giving up on extras - eating out, socialising, going to the gym - is all easier if you love your home. I think this applies equally between lockdowns and recessions.