Anyone else going mad trying to buy a house in London?

[jumpjumpjumparound]

Apologies in advance I just want to have a rant!

Is anyone else having an absolute nightmare trying to buy a house in London? The market is crazy here and every other buyer is a cash buyer making it near impossible to secure anything.

First house we had secured and then buyer pulled out as we were coming up to exchange and sold to a cash buyer instead leaving us heartbroken and out of pocket on survey and search fees.

Next house that we really liked we saw before it was even on the market then before we got back for our second viewing it had been snapped up by a cash buyer.

Current house that we like we can't afford the asking price only just below and now a cash buyer has turned up on the scene probably going to buy it and he isn't even going to live there just rent it out straight away.

What makes it worse is a severe lack of houses coming on to the market so lack of supply seems to be driving up the prices.

Its so frustrating any one else in the same boat?

I'd settle for finding a house that I actually liked.

Most listings here are the same gotty house, on a grotty road, listed with multiple agents at a comical price.

And the market for flats is dead, so we lose at both ends.

OK I'm going to go against the grain here and say (as a poster said up thread) that there are affordable areas in London - if you are willing to move there. I arrived in the city 4 years ago with nothing and have bought a house. Not a big one (two bed with a postage stamp sized backyard!) and not in particulary fabulous area but not in a shit hole either. We had a budget, stuck it in Rightmove and just said London... and we ended up in SW but we looked at houses all over.

I know eveyone has different circumstances and there are lots of reasons why lots of people can't afford to buy...but...(and I'm not saying this about anyone on this thread!) a lot more people could afford to buy if they got serious about it.

The chain system when buying here blew me away, I had never come across this so I can understand why you would want to buy your 'forever' home or even the 'this will do for 10 years' home as it is a bloody faff. However, as I said, we have a two bedroom house with one child and this house will be plenty big enough for another child so we could potentially be here for 5 years. That gives us time to pay down our mortgage and save (our mortgage is cheaper than our rent in W12 was!) so then we will be in a better position next time to buy something that we love in an area we may like

I personally don't think London prices are going to drop, they may stabilise but not drop. And I don't think getting on the property ladder is something you have to do, I was pregnant and completely blame the hormones for it as previously I had said I didn't want to buy (loved moving every few years!) but I guess I'm saying that too many people will only look to buy where they grew up, where the high street is happening, where the next big suburb is, that the house has the required number of rooms for the planned number of childred, off street parking, etc etc which is all fine, but don't moan if it's out of your reach. If you want to buy, at least try looking in areas you can afford, for the size house you need, or for schemes that can help you.

And my DH and I are only basic earners, not high rolling City types!

I agree with everything GoldClass has said.

We bought a house in London 6 years ago, couldn't afford N or W London, so bought in SE London. It's lovely here, lots of green spaces, house prices affordable (as in cheaper than many places outside London), just not trendy. Long may it stay that way. When we were looking to buy we looked at "nicer" areas but couldn't afford them, so widened our search - right to the other side of the river in our case. If you cannot find what you want in the area you want, you have to compromise somewhere - on what you settle for, or on area.

And I also agree that house prices will not come down in most of London as places are selling, some sell quickly even in our less salubrious area. Why would sellers drop their prices when they can sell their houses for more?

It does feel slightly unsustainable, but as others have said there are still cheap areas. We did a blanket search of se and ne London earlier this year and have ended up in Walthamstow, as have many other ex-hackneyites. Even cheaper is Leytonstone, Forest Gate etc.
I would say you need to buy a house as a home not an investment in this market, so buy somewhere you're happy to stay in if prices fall and you end up in negative equity.

HSBC announced a 5 year fix today at 2.99 for 60% LTV. Even if you can't come up with that LTV, there are good deals for good deposits around. If you don't borrow too crazily and overpay, then you could pay down a lot of capital in five years on those rates, to protect against drops. Rent is so high that you might well only be paying the equivalent each month.

And as many of you have said, we've got plenty to be grateful for. I think it is an OK time to buy - as long as you've got a plan for a drop.

so buy somewhere you're happy to stay in if prices fall and you end up in negative equity.

I'm stuck, I think, but I appreciate it's probably because I'm so risk averse.

I'm reluctant to buy a house in need of substantial refurbishment (because that's all I can realistically afford in the area I'm looking) . If or when the market turns, my home will be falling in value whilst my renovation costs spiral (because they always do).

If I buy a 'done up' house somewhere less salubrious or convenient, I could be happy in the house, but what if I hate the new unfamiliar area and find myself desperate to move, but can't because the market is gone?

The rises in the last year in London are dumbfounding. It feels so ludicrous in the wider economic climate that I can't believe this can go on.

Why would sellers drop their prices when they can sell their houses for more?

Well, except because most of them aren't selling. One will sell at a crazy price for a crazy reason, and this anomaly convinces every hopeful vendor to keep their property on the market for another six months without a price cut, but with multiple agents.

What about trying renting in a less salubrious area? That way you can get a feel for it before buying. It is hard moving out of your comfort zone, but most areas have something going for them. When we started canvassing opinion about where we should move to, we found pretty much everyone loved the area they lived in and recommended moving there. To me this means people are generally adaptable and want to be happy where they live. There are good and bad things about each area, particularly in London where you have Victorian houses and council estates side by side.

am looking have been guaging the market for a few months now but need to sell a flat - and awaiting communal works to be finished there to get better price - flats that tick all the boxes are selling fast eg one in nw london sold after the open house day - i couldnt view that day and called agent the monday after to be told it was already sold!

other places eg some ex council (on the rail line) and "odd" layouts are being reduced and not sold after four months .... it is weird.

realistically i need the cash in hand from selling so as to be able to get one of those "tick all the boxes" flats as if you not effectively a cash buyer you stuffed... or settle for compromise and get a "bargain" which has been laguishing long term... the certain agents who put flats on at xx amount then suddenly after three months it's "new price" - reduced by 50k as jsut not selling

I agree with Stokey, people are generally adaptable and you will find the good in your area! When I first told people where we were thinking of buying, almost everyone said not too. But we really like it, the high street has everything we need (but not everything we'd like!), our road is very quiet and our neighbours are all lovely. We got lucky I know but we were in a better position that we have no family or strong friendship ties in London so could move anywhere we could afford.

Good advice everyone, thank you.

I am just so in love with the house we're renting that I can't bear the thought of going elsewhere . The most upsetting thing is that our landlord has suddenly decided that he wants £150k more than an identical house sold for across the street not six months ago. (We didn't have the money at the time because DH's flat hadn't sold).

I can't believe he's going to achieve this price, but the local agents are all so desperate for the instruction they'll tell him anything, I'm sure. And someone may fall in love with it, and pay the daft price, not because of the house, but because our furniture and artwork and gardening has made it look so bloody lovely

House hunting in London nearly broke us until I saw a really ugly 50s house that was great inside. We didn't get that one but it made me realise that for us paying the extra for Victorian character was not worth it and we now have a 50s house that is great but at least 100k cheaper than local Victorians.

I very much agree with minimisa on the house type question. It can allow you to live in a decent sized place in a good area. Victorian is lovely but is also so costly to heat and stuff.

On the up and coming area thing, my main reservation on that has been really understanding the issues in the local schools. It is completely different pre children, and there are some fantastic, really cool bits of edgier London that I'd have LOVED to live in prior to my baby, that I'm now a lot more jumpy about.

I know that some people are really committed to their school whatever the area, btw....

Another house hunter here. We're trying to buy in Walthamstow (moving from stokey) and it is hard to know where to try and buy in the area as we don't know it that well.

We have only just sold our flat and are now looking seriously after having been humming and haaing about where to move to for the last two years, but I'm nervous about what's going to happen.

I'm becoming obsessed and dream about houses. I spend my mine on rightmove.

stokey how are you finding life in your new place? Settled in now?

Hi Hackneybird, have only been here a couple of weeks but so far so good. Lots of young families, the people either side of me both have 2.5 yr olds and 2 doors down, a 7- month baby. Then again, there is a guy opposite who seems to have some hoarding issues, so bit of a mixed bag, but that is London for you. I think it feels like Stokey did about 10 years ago before it got uber-trendy.
There are a few boho shops in the vilage - authentic butcher, tapas bar, posh Spar - and an antique and crafts market on Wood st so think the gentirification is starting.
We're just about in the vilage, when we were house-hunting a friend recommended looking east of Hoe st, north of Lea Bridge rd and west of Wood st, but I think there are also nice parts near Lloyd park.
Have found it all very friendly so far
(Sorry for hijack)