Housing market can't get anywhere

NoFrills01 · 2022-06-26T20:39:30+00:00

I'm feeling so stuck and depressed. We were trying to buy our house from our landlord but as the market has dramatically increased over this last year and 2021, those dreams are rapidly fading away. We have saved so hard this last year, and have been offered money on a loan or from the "wills" of our parents making a potenial deposit of roughly 39k but that wipes us out. We are tied to the area with our jobs and school for DS in Primary. I feel like we are working like absolute dogs, we never go out on weekends we just go for walks and do free things, we never ever eat out or get take awats, we don't go to the cinema or anything like that, we just save as much as we can every month, as the bills have increased the saving amount has dramatically reduced. I just feel like it's all for nothing, until the market relaxes and even then its ridiculous. We have a joint income of 48k as I work PT but can't get extra hours. I've felt physically and mentally ill this year, we've had alot of huge emotional upsets happen to us and within our family, and I have some health issues that I know sooner or later will end in having to have surgery I dread the sick pay! I feel guilty for buying things all the time, and I try and cut my food shop down to £45 a week and it seems to get us not much at all. I never get my hair cut, or dyed I do it all myself. I just feel so empty and depressed, never buy anything for myself. I just look and feel a mess. I feel so sad all the time. Just want my DS to have a house that can be our home

OnlyFoolsnMothers · 26/06/2022 21:41

What area?

ReneBumsWombats · 26/06/2022 21:43

I'm so sorry this is happening to you.

It's happening to so many other people that I'm tempted to tell you just to make peace with renting - plenty of people never buy and the homeowner culture does seem to be very much a British thing - and just use your money to enjoy your life. Now is all you have.

couldishouldigoforit · 26/06/2022 21:47

Couldn't you take a second job on if you work part time currently? Sad to say that unless you have 2 people working full time home ownership is beyond the reach of most people

calmlakes · 26/06/2022 22:16

If you can't increase your income or move your other option is to buy a flat rather than a house or accept that you are renters.
Accepting you are renters might free up income for you to enjoy other parts of your life?

Beachmummy23 · 26/06/2022 22:23

Honestly move to an area you can afford. We just brought our first house and brought much smaller as we didn't want to move our child school. She since has had two new girls start in school both have settled in really well. Really regret not moving her now

JuneJubilee · 26/06/2022 22:23

I'm sorry you feel so crap x

you say you're trying to buy off your LL. what's the situation? Does he want to sell anyway or is he just selling to you because you want to buy it? Have you got a MIP? How much more do you need to save?

and yes, a second job does seem like the best option to get you more savings.

Do your best to achieve it, there's so much more security owning your own place (even if the bank owns most of it!!)

FriendlyPineapple · 26/06/2022 22:26

I don't know if I would trade a miserable existence for home ownership tbh.

OompaLoompaa · 26/06/2022 22:29

There’s lots of areas you could buy a two bedroom flat in for 200k, have you exploited this option?

OompaLoompaa · 26/06/2022 22:32

Sorry that should say explored.

RewildingAmbridge · 26/06/2022 22:35

DH and I both work full time in professional jobs, when we were having for our first house we both took on second jobs, and we didn't have a DC to pay for then. Realistically you won't afford it on your income unless you are willing to look in another location. We both still pull overtime for things like holidays.

OompaLoompaa · 26/06/2022 22:38

Have you look at part rent/part buy schemes? I think you have to stop thinking about buying the house you are renting.

OompaLoompaa · 26/06/2022 22:41

Are there any cheaper properties you could rent so you could save more?

HintofVintagePink · 26/06/2022 23:05

Can you look for any shared ownership schemes in your area? It doesn’t have to be your forever home but it will get you on the ladder.

Things are desperately wrong in this country where you are working purely to exist and save. It sounds joyless and heartbreaking and I’m so sorry you feel this way.

Newcastlegirl · 26/06/2022 23:18

Personally I would cut the amount I was saving and enjoy life.

Yes owning your own home might give you more security (assuming you can afford it), but I would rather rent and have some happiness in my life. Honestly. Life is for living - maybe it’s time to make peace with the fact that you can only afford to rent at the moment.

Its either that or make drastic changes - change your job or move areas.

ChrisReasBathEggs · 26/06/2022 23:22

I think in time you will realise that not buying now is a good thing. Look at the state of the American housing market already. Lots of house prices being reduced. It has only just started there too. Similar is on the cards here too, but we are a bit behind the American market.

bellac11 · 26/06/2022 23:26

You have a big deposit and a good income, can either of you work from home? You can move your daughters school

Where abouts do you live in the country

onthefencesitter · 26/06/2022 23:48

ReneBumsWombats · 26/06/2022 21:43

I'm so sorry this is happening to you.

It's happening to so many other people that I'm tempted to tell you just to make peace with renting - plenty of people never buy and the homeowner culture does seem to be very much a British thing - and just use your money to enjoy your life. Now is all you have.

It isn't just a British thing, but it is a country where home ownership is not very high- 63% but yet everyone expects (and wants to be) a homeowner. Compare that to Singapore (89%), Norway (80.3%). Even Spain is higher at 76.3%.

Germany is always held to be a nation of renters (51.1%) but actually its home ownership rate is only 13% below that of the UK; at the rate the UK is going, it may even equalize with Germany at some point. London is already at 50% home ownership.

OP- don't get demotivated. when i first started looking in 2019, a flat in my price range was 450k. It dropped by 50k when I finally bought it due to brexit. And I bought in the same area of London that my DH grew up in so it was not a cheap area at all. The same thing would probably happen now. However, if you really want to own your place in your area of choice, you will have to make some compromises i.e. going for a property that is not as desirable. For us, that was a small 2 bed flat as everyone was moving to commuter towns at that time. I can imagine now due to the costs of tradesmen, properties that may stick on the market would be properties that need a lot of work. Or properties with no garden. Or flats (I am putting my current flat on the market in the hopes of bagging a 3 bed flat sold by a former BTL landlord). Yes it would not appreciate as much but perhaps thats the price of security (and wanting to stay in your current area)..

bellac11 · 26/06/2022 23:50

The problem with UK rentals is that there is no security, you often cant have pets, you can just be moved on in a whim, and its much more expensive for the same property than a mortgage would be.

If those things were changed, people wouldnt crave for being homeowners.

onthefencesitter · 27/06/2022 00:00

bellac11 · 26/06/2022 23:50

The problem with UK rentals is that there is no security, you often cant have pets, you can just be moved on in a whim, and its much more expensive for the same property than a mortgage would be.

If those things were changed, people wouldnt crave for being homeowners.

didn't they change the law that renters can have pets now, and also s.21(no fault evictions) has been scrapped. I suppose the landlord still can sell the property and you would have to move! It is more expensive to pay rent but at the same time, a lot of FTB have no choice but to buy doer uppers and the costs of maintenance/repairs can spiral...

I think the big reason is retirement. Few people can afford to pay rent in retirement. That was the main reason we bought. Also we didn't have any better ideas on what to do with our money but figured we would always need shelter. It is also a tax free way of investment other than stamp duty (which was waived on the first 300k anyway). There is no other property tax other than stamp duty as you have to pay council tax as a renter or as an owner.

user375242 · 27/06/2022 00:09

48k is a massive deposit, can you really not find any cheaper property in travel distance of your DC's school? I bought my first house last year with a 7k deposit for a 130k house. I realise you can buy a house for 130k in London, but you already have over 5x the deposit I needed. How much exactly is the property you want to buy? We went from a large 4 bed to a small 3 bed in a deprived area in order to buy, and I have to travel to get my children to the school they were at, you nearly always need to compromise and make sacrifices when first buying, most people can't just buy their dream home later in life without skipping that step.

onthefencesitter · 27/06/2022 00:37

user375242 · 27/06/2022 00:09

48k is a massive deposit, can you really not find any cheaper property in travel distance of your DC's school? I bought my first house last year with a 7k deposit for a 130k house. I realise you can buy a house for 130k in London, but you already have over 5x the deposit I needed. How much exactly is the property you want to buy? We went from a large 4 bed to a small 3 bed in a deprived area in order to buy, and I have to travel to get my children to the school they were at, you nearly always need to compromise and make sacrifices when first buying, most people can't just buy their dream home later in life without skipping that step.

It really depends on area. In my area, £7k would barely cover my legal fees. Stamp duty alone was £4600 as a FTB. Deposit was £70k and that was with a 85% mortgage. Average London deposit is 100k.

And even if I moved 50 miles away and commuted 1.5 hours a day to work, a 2 up 2 down terraced house would still be £300k. And I would have to pay £800 combined every month for DH and I to commute to london. And if I bought a flat in a commuter town, I would have the double cost of service charges and commuter fares plus flats in London have much more of a market. I did all the calculations and buying a flat in london was the cheapest option.

I am guessing that such a reason is why OP has to stay in the same area. Its not just the school, its also the job. Commuting comes with its own costs and given the high rate of inflation, it may not be doable even if the price of the property is lower...

OompaLoompaa · 27/06/2022 07:44

Where about do you live?
What jobs do you do?
I would really think about relocating if home ownership is that important to you. That and perhaps getting a second or evening job so you could save a bit more.
Either that or work out a budget which allows some fun money for your family to bring some joy into your one life, £30 each and £40 for family fun if you could afford £100 per month.
The other things to think about is few people buy a family sized home as their first property, they look for alternatives.

weekendninja · 27/06/2022 07:51

Are you really tied to your area? You say you work PT and cannot increase your hours.

As for schools, there will be schools where you relocate to.

The thought of renting when your scraping to bed ends meet like that would terrify me - rental prices here are rising at a disproportionate rate.

bellac11 · 27/06/2022 17:41

onthefencesitter · 27/06/2022 00:00

didn't they change the law that renters can have pets now, and also s.21(no fault evictions) has been scrapped. I suppose the landlord still can sell the property and you would have to move! It is more expensive to pay rent but at the same time, a lot of FTB have no choice but to buy doer uppers and the costs of maintenance/repairs can spiral...

I think the big reason is retirement. Few people can afford to pay rent in retirement. That was the main reason we bought. Also we didn't have any better ideas on what to do with our money but figured we would always need shelter. It is also a tax free way of investment other than stamp duty (which was waived on the first 300k anyway). There is no other property tax other than stamp duty as you have to pay council tax as a renter or as an owner.

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Yes retirement too absolutely

berksandbeyond · 27/06/2022 18:12

It sounds like it needs to be a cheaper area, a smaller step, or both.
This is hard when you've got a family because I know it's not ideal to 'downsize' to a smaller property but that's how most people get on the ladder - in a lot of areas you can't just skip the bottom few rungs!
We live in the south east so our first property was a 2 bed flat in a 'regeneration' area, using help to buy . It went up in value by 30k so we were able to use that to take the next step and buy a 3 bed house. Help to buy may be worth looking into?