One bed flat in London - am I crazy?

[LucySera90]

I'm a FTB considering buying a one bedroom flat in Zone 2 and looking for some advice.

From what I can see, the market for London flats has stagnated, mainly due to COVID - especially for one bedroom flats without a garden or balcony. How quickly this market recovers is likely dependent on whether WFH is here to stay or not.

At the same time, buying a one bed flat still seems to make a lot of sense for my personal situation. I'm in my twenties, work as a junior doctor in the NHS (no home working) and have a speciality training contract that will keep me in London for the next 5 years. Factors like having my own space, affordable monthly costs and a quick commute after a night shift are all important to me.

The potential downside I can see is if I need to move within the next few years. Ideally I see myself staying for at least 5 years but I'm also conscious a lot can change in this time (relationships, children) and I may need to trade up for more space. While I'm not looking to make a huge profit - I'm buying a place to live rather than an investment- I'm concerned that I might struggle to sell or end up making a loss.

Any words of advice from people with more experience of the London property market? I appreciate it's a little bit like gazing into a crystal ball at this point, but I'd still welcome any tips or insights.

There will always be a market for 1 bed flats in London, just think how many other people are in similar situations to you?
If things change, then you'll be starting from a better place with a bit of capital behind you, and the rental market will also always be there as well if you need to move away for a while to help keep up with the mortgage.

I would say is ok as long as you do not over pay for the flat.

I would just say to be careful about which type of flat - steer clear of new builds or anything in a really big block. Smaller pre-war blocks, mansion flats and converted victorian houses are probably your safest bet when it comes to saleability and holding value.

If it’s at all possible to stretch to a two bed (eg by looking in Z3 rather than Z2?) I’d advise it. It just gives so much more buffer in terms of changes to lifestyle - eg partner / baby / flatmate etc - and when you come to sell it, the market for 2 beds is going to be much bigger than the market for 1 beds.

Always choose the best connected flat - a flat near a tube that can get you into several areas of central London in 15-20 minutes with trains every few minutes is always a better bet than a flat that is on a train line that only has a train once every 20 minutes to half an hour and only takes you to one mainline station in central London. Make sure that it is a FTB neighbourhood (lots of cafes and restaurants serving younger people etc). Try to buy on the top floor to avoid neighbour noise - especially if you are a junior doctor and may end up working shifts. There may even be the chance to extend into the loft (if there is one) at a later date when you have more money. Good luck.

It’s definitely worthwhile committing to purchasing a property in your circumstances. I would avoid new build like the plague though, and go for a converted Victorian property - they will hold their value. Plenty of those in zone 2, especially south of the river along the northern and Victorian lines

How much can you afford and what hospital do you need to travel to?!

Buy. I rent out my first buy, a 1 bed flat and it’s the best investment I have made. When you are ready to move on to a bigger space, you can rent out or sell depending on the market at the time.

You’re in a very strong position. As you say, demand for the kind of flat you want is low, but ultimately (particularly in London) I just don’t think WFH is going to be a factor. In other words you’re in a good position of buying at “base” and not losing money. You’re also buying to have a home rather than for pure profit, which is often what clouds people’s judgement.

Stick with your instinct and pick a location and flat you love. That will steer you well. As above, avoid new build. Given your position you should be able to prioritise (share of) freehold but at least see if there’s an option to buy the freehold. And have a more than 85+ year lease.

People will help more if you give an indication of location and budget, but I lived in a very desirable zone 2 location of London and it’s noticeable how far non-garden flats have dropped and I’m prepared to bet my current mortgage they’ll ultimately make money!

Pick the very closest flat to the hospital, they will always sell and most importantly after a long shift you're going to want to walk home

If it's St Thomas's there's great flats within 10 minutes walk

@LaurieFairyCake

Pick the very closest flat to the hospital, they will always sell and most importantly after a long shift you're going to want to walk home

If it's St Thomas's there's great flats within 10 minutes walk

Good advice.

Being able to walk to / from work at unsocial hours is a big advantage. Otherwise, look at a location where you can get to when a shift starts or ends late, e.g. on a night tube (currently suspended) or night bus route.

The London property market is already recovering. Wfh in some capacity will persist but for most companies this will still mean 3 or 4 days in the office and a lot of roles cannot wfh. Plus a lot of people don't want to live in a suburb/ town or semi rural / rural. A lot of older people want to retire to a good London flat for example. London is an exciting city full of culture and opportunity. Consider yourself lucky to be able to buy during a time when prices are low. This chance may never come again!

The market for London flats is not recovering atm, it’s pretty dead now stamp duty hols is over from what friends are experiencing anyway. So really a buyers market..so you are in a great position to get a good price. In my opinion your best bet is a one bed Victorian conversion in a really desirable part of London - what’s your budget? Then it also appeals to those who have the big house in the country and want a weekday bolt hole in London as well as the market similar to yours. Victorian conversions don’t tend to have the onerous service charges/ leases/ cladding that many flats are suffering with at the moment.