How do you people afford to buy property in London?

[England101]

Im in my mid 30s and looking to buy a property, ideally in the outskirts on london. I have a deposit of 60K but (according to online calculators) can only borrow 155k. Ive began looking on the property for londoners website they have a shared ownership house on there for 725k!! full price and they asking for 290k for 40%!! Even with shared ownership how are normal people meant to buy property in/around london.

Most of my friends have been priced out of London, the only ones who have managed to buy have been through inheritance (of large sums of money or part of the house). I agree it’s ridiculously expensive and not affordable for lots of people (or even couples) on an average London salary.

@SD25 I would skip the flat stage if buying now. We are skipping the medium size house & buying bigger further out.

@shesellsseacats it's leasehold. It may only have a short amount of time left on the lease.

[quote KeyboardWorriers]@shesellsseacats it's leasehold. It may only have a short amount of time left on the lease.[/quote]
A leasehold house?!!

How does that work, then? I thought only flats were leasehold?

Essentially means someone else owns the freehold.

It's fairly unusual these days (except in some new build estates) but you do see patches of it in certain places.

I don't know how anyone who works in my industry would be able to buy nowadays (the arts/theatre),the salaries are too small.

My parents inherited some money and gave me 20k which I used as a deposit on a flat back in 2002. Zone 3,2 bed flat for 114k.

Met my exH and we bought a house a couple of years later and I've been there ever since. Can't afford to size up so will stay here to retirement. I work evenings and weekends so don't want to move further out.

And I guess my kids will never leave home?! I won't be able to help them like my parents did.
Stupid property prices!

Also,I remember 20 odd years ago that renting was really affordable compared to now. My next door neighbour's rent their 3 bed for £1800 a month 😮

@shesellsseacats ... It only has 22 years left on the lease...

An application is in to buy the freehold but my hazy recollection is that you would have to pay fair value for the freehold

I bought with my husband in 2015. Buying as a couple meant we had a larger deposit and 2x earnings so could borrow more.

We bought a flat first, in an "up and coming" area.

We got very lucky as the area increased massively in popularity after we moved there and we sold the flat for quite a lot more than we bought it for.

We then bought a house and the same thing happened again. We were just very lucky.

We then moved out to a village!

Managed to buy a 2 bed ex council house 2 years ago in a grotty area of the outskirts of zone 4 for 335k. Still needs quite a lot of work and we're outgrowing it already but its a good enough starter home. Don't set your sights too high, for your budget it would probably be a small flat at first until you have done capital in the house.

I bought my 3bed house in zone 4 with similar deposit to yours at the end of the recession. So more luck and timing because I wouldnt be able to afford it today and would certainly be looking beyond zone 4

Brought an ex council flat in a dodgy area that needed lots of work. First property is just a starting block.

We bought several years ago and have been so lucky. We ended up with a 3 bed flat as it came back on the market after we'd been to view some two beds in the same building and went for it. We bought over the top end of our budget which felt terrifying at the time but promotions and paying off student loans etc have meant mortgage feels low now.
We love the area so now looking for a house locally before we're priced out (the houses have increased in value faster than our flat). Between paying down quite hard on the mortgage and value increase we have a hefty deposit for the next place.

Our work friends who have the fancier houses have only done it with family help or with two city type jobs where a good few years at work would mean bonuses would give them their deposit. Our local friends who are in the arts etc have much more modest houses (little 2 or 3 beds). I know a few people in our local area who have had 5 or 6 people living in a 2 bed flat as they can't afford more.

You don't , you live outside and commute in! No one buys a 750 k first home unless they have been given money

I bought a London shared ownership - made a little profit (not much) but paid peanuts on the rental portion, allowing us to save lots over a few years. Used the cash to buy a four bed in a good area. No inheritance but we are big savers. Couldn’t have done it without shared ownership.

When I bought my first small 2 bed flat in a grotty area I didn't have a partner so bought with a friend. There are many 1/2 bed flats for your budget op. In your position I would buy a 2 bed and get a lodger.

Bought a 2 bed flat in SE london zone 3 on my own, no help but good salary.
I had to compromise on the location. I like it here so all good, but I sometimes miss my old buzzy area in Zone 1 (where I was living in a flat share)

You start with a 1 bed flat. I did that. Zone 2 but far from a prestigious block!

Bought first flat outside London for less than £50k and rented it out for a few years whilst travelling. Moved to London and sold it at double the sale price which funded a deposit on first house in zone 4 about ten years ago. I was on a good wage and able to get sole mortgage for this. House sold for double what I paid for it in value and husband had finished uni by this time and earning good wage, and so were able to buy bigger place in same area. Hoping to sell in next couple of years and relocate to vastly cheaper area!

Just in a process of moving back to London after a mistake move up north. I used to rent in London.
Mix of a big deposit (me) by saving for 13 years, running a very small but quite successful business and a highish earning husband who can get us a big mortgage

P.s- it’s my first home and it’s a 3 bedroom flat in a mansion block, in a very nice green area in SW London. I will never make the mistake of moving out of london again.

Buy further out and with a partner. I have £62k deposit and am in the process of buying a 4 bed terrace in Essex for £290k

I bought a 1-bed garden flat in SW London (Zone 4). My family helped me with the deposit. DP and I then bought a 4-bed house in SW London (Zone 3). DP paid the deposit.

I don’t think many FTBs buy houses in London.

Buy further out and with a partner

It’s not always that easy to spirit up a partner you want to commit to 25 years mortgage with . O/p doesn’t mention one…

The concept of ladder is mostly a thing of the past now as it only works when prices are increasing, London market has been flat for the last 5 years (last 12 months might be the exception for houses with garden). To paraphrase a famous economist in 1929, house prices have reached what looks like a permanently high plateau.