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Original poster

Would you buy a one bed, no outside space flat in Home Counties right now?

36 replies

Sssloou · 12/04/2021 23:28

Young relative looking to buy first home. With hard earned savings can just scrape enough to buy a one bed flat with no outside space in Home Counties.

Would you advise buying now or waiting? Worried that this type of property will drop in price over the next year (post furlough, post stamp duty holiday) and they will risk negative equity. I am a believer in having a home and if it goes up or down over the long term you just weather it ..... but with a one bed flat it’s unlikely they will stay there or it will be suitable for more than 5 years just due to their stage in life - and worry that they may lose some of their hard earned / saved cash deposit when they come to move on.

Do these property types in this type of area hold value (lots of new builds going up around it - this one is 12 years old) - and what price is reasonable to pay now - eg less or more than 2019 / 18 / 17 sold prices?

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Original poster
Sssloou · 13/04/2021 12:55

Bump......

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Didiusfalco · 13/04/2021 12:58

I wouldn’t now, as presumably first time buying relative wouldn’t be paying stamp duty regardless of the holiday? I think I would want to see if the market calms down and prices drop - personally I think they might.

mummabubs · 13/04/2021 13:03

Honestly I don't know how well people are going to be able to answer your Q OP unless they're literally buying and selling in those areas right now. I mean, nationally speaking flats seem to be going down in desirability and value, so on one level the couple may be able to get a flat a little cheaper. However there's then still the risk of it being harder to sell on, especially if as you say the flat doesn't come with outdoor space and they're likely to have to move soon. Best thing probably is to look on Rightmove or Zoopla for recently sold prices in the last year for similar flats in the areas that they're interested in.

Original poster
Sssloou · 13/04/2021 13:08

They are paying SD actually as they were left a share in a property by a relative which although they never bought it or lived in it means that they are not technically a FTB - sorry for omitting that detail.

I think many people might try to leapfrog one bed no garden flats and they I think they are having a tough time selling right now especially with huge numbers of new build / shared ownership flats being built.

But they need somewhere to live for 5 years. Not sure what 2nd hand flats are going for. Is it a “separate” market dominated by BTL investors rather than owner occupiers?

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Boomchicka · 13/04/2021 13:09

I'm not from the area but personally, no. After spending lockdown in a terrace with no outside space I would never voluntarily live in a property without a garden again. Pre-lockdown I would have considered apartments or another terrace, but never again.

Original poster
Sssloou · 13/04/2021 13:50

The thing is they can’t afford a two bed or outside space (as buying alone) but I wonder if they would just be better renting for 5 years until they can afford to buy - as there are so many sunk costs on a purchase and then the risk of negative equity?

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AnotherBoredOne · 13/04/2021 13:59

What price range are you talking? Might influence the answer.

Original poster
Sssloou · 13/04/2021 15:17

£270k - nice small block in gated complex on edge of Loudwater in Bucks.

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TheGoldenApplesOfTheSun · 13/04/2021 15:21

I wouldn't. Don't forget, there may also be an issue with cladding when they come to sell or remortgage - could put them in a very awkward position. Google EWS1 cladding and you'll see some horror stories of FTB trapped in flats they can't sell. It's not just high rises affected...

GingerBeverage · 13/04/2021 15:25

Gated complex? Are there service charges? Leasehold or share of freehold?
Lot of variables but IMO 1 beds without outdoor space are not going to increase the same way we have seen houses and 2 beds with gardens do.

In which case renting and saving for 1 year or so won't hurt.

But as ever, DYOR

Newgirls · 13/04/2021 15:31

Will the flat decrease more than cost of rent?

Eg 1000 a month in rent x 12?

HellonHeels · 13/04/2021 15:42

A quick search on Rightmove brings up a few 1 or 2 bedroom flats with a private garden or courtyard in that area and price. Low rise, brick construction.

Would they be paying less in mortgage cost than in rent?

I cant work out if they still have the share of property that they inherited?

Original poster
Sssloou · 13/04/2021 15:57

Sorry I realise that SD doesn’t apply as property is under £500k. No that property was sold so he has that towards deposit.

Leasehold. Brick built. Yes mortgage (repayment) would be less than renting - but SC is £170 so would would break even.

I am concerned about oversupply of new builds locally for resale and would encourage saving for a house further out ..... but this wouldn’t be where they wanted to live. I haven’t done the maths on comparables - just my gut feeling.

I do think there is a two speed market - houses flying - flats sticking - so the next step on the ladder could get wider over the years ...

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Pepperminttea16 · 13/04/2021 15:58

I think £270k is a fortune for a flat personally. I also live in the Home Counties (Hertfordshire) and know how crazy it can be but it can also differ quite drastically if you just move a few miles down the road.

A quick Rightmove search shows 2 bed terraced houses for £270k in some parts of bucks

Original poster
Sssloou · 13/04/2021 16:00

@Newgirls

Will the flat decrease more than cost of rent?

Eg 1000 a month in rent x 12?

This is a good point that I hadn’t factored.
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GingerBeverage · 13/04/2021 16:28

SC of £170 on a 1 bed with no garden? Thanks but no thanks. He can do better (IMO).

murbblurb · 13/04/2021 16:37

new builds lose value and 1 bed flats are a very iffy investment - and have been for many years. Now, a shoebox with no garden; don't touch with a bargepole.

relative would be better looking at ways to be able to go somewhere that prices are not so insane. There are 2 bed non-shared-ownership flats in London for that much; 283 on rightmove today.

Bluntness100 · 13/04/2021 16:39

Totally.,get on thr ladder. Waiting five year and the over whelming odds are they won’t even be able to afford what they can now. Buy now and in five years they sell for a profit. It is batshit to wait five years.

Original poster
Sssloou · 13/04/2021 17:22

@GingerBeverage

SC of £170 on a 1 bed with no garden? Thanks but no thanks. He can do better (IMO).
There are parking spaces and small communal grass and trees - but I totally agree - I would be putting another £170 / month on a mortgage to stretch for something better (not sure if he can in reality).
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Original poster
Sssloou · 13/04/2021 17:30

@Bluntness100

Totally.,get on thr ladder. Waiting five year and the over whelming odds are they won’t even be able to afford what they can now. Buy now and in five years they sell for a profit. It is batshit to wait five years.
I think there’s a much better prospect of that with a house ...... but I am worried of oversupply of new build flats in the area currently and in the future (this is not a new build) which may leave him stuck if they are competitive. I suppose that he would have to accept that any increase in flats is minimal (compared to houses) but also need to factor in cost (and disruption) of renting over the next 5 years alongside sunk costs of buying now.
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Original poster
Sssloou · 13/04/2021 17:37

@murbblurb

new builds lose value and 1 bed flats are a very iffy investment - and have been for many years. Now, a shoebox with no garden; don't touch with a bargepole.

relative would be better looking at ways to be able to go somewhere that prices are not so insane. There are 2 bed non-shared-ownership flats in London for that much; 283 on rightmove today.

It’s not a new build - but my concern is that current new builds are coming in at similar price in same area (but not as nice setting).

These are my anxieties also. I am surprised that there are London properties at that price as he would have looked. He is living in Ealing currently and social life is W London and work is West End.

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GingerBeverage · 13/04/2021 21:55

So he'll be commuting from Bucks to West End?
Or wfh in the 1 bed?

A quick search shows plenty of supply. I don't think he'll miss out by holding off and I think a 2 bed with outdoor space is going to hold value far better in the long run.

PresentingPercy · 13/04/2021 22:08

I know Loudwater. I would not buy there. Nowhere near a station for a start and motorway noise if you are not careful. I think his head is being swayed by gated and lock up and leave credentials.

The whole of Wycombe is being expanded. Huge housing is planned. The massive problem with 1 bed flats is that you cannot have a flatmate. For many young people, that’s a big thing. Always go 2 bed.

I would have thought he could do better than Loudwater. However a moderate area of London wouldn’t appeal to me either.

Original poster
Sssloou · 13/04/2021 22:45

@GingerBeverage

So he'll be commuting from Bucks to West End? Or wfh in the 1 bed?

A quick search shows plenty of supply. I don't think he'll miss out by holding off and I think a 2 bed with outdoor space is going to hold value far better in the long run.

WFH currently but back to office 3 days a week in the summer. I agree it’s the “worst” type of property to buy.
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Original poster
Sssloou · 13/04/2021 22:52

@PresentingPercy

I know Loudwater. I would not buy there. Nowhere near a station for a start and motorway noise if you are not careful. I think his head is being swayed by gated and lock up and leave credentials.

The whole of Wycombe is being expanded. Huge housing is planned. The massive problem with 1 bed flats is that you cannot have a flatmate. For many young people, that’s a big thing. Always go 2 bed.

I would have thought he could do better than Loudwater. However a moderate area of London wouldn’t appeal to me either.

This is really helpful info as we don’t know the area at all. He sees a safe / comfortable lock up and leave and would not be socialising locally so hasn’t taken much notice of the area - but the location is what he is would be selling on in max 5 years.
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