Property Ladder missing a step?

[AllyBugs]

I'm not sure if it's location specific or more general but there seems to be a big gap in properties for sale locally. Plenty of starter type properties available - we're in a relatively cheap area so that's the 125-200k range - but then it seems to jump to 450k plus properties. We've outgrown our current property but it looks like the next step is out of reach, especially given current interest rates.

Not sure why I'm posting, just kicking myself that we didn't stretch ourselves more on our first purchase. But we were the fools 12 years ago that listened when they said interest rates were only going to go one way so played it extremely safe and now feeling a bit trapped.

I think this happens in a lot of areas - but I'm not sure why. I suppose it's because that extra step is to eg four bedroom houses, and there are a lot fewer of them and supply and demand dictates that the price jump is disproportionate? We felt like that in that there seemed to be a fair number of three bedroom houses around, but the next step up was A LOT.

We're in a 3 bed semi at the moment, but one of them is a box room. Not necessarily looking for a 4 bed, 3 good sized rooms or a downstairs study would be ideal. We've now got two people working from home at least 3 days a week so we just need that extra bit of space. No scope for a garden room or similar unfortunately.

I think often the step above 3 bed is rare. And that’s why it’s so much more expensive, it’s in demand.

We're in the same boat, in a small 3 bed which cost about 150k. We now need a larger 3 bed or small 4 bed and you're talking a BIG jump to either of those.

No regrets because we couldn't have stretched when we bought our house anyway, but it is frustrating.

The 500k properties are actually much bigger houses, large 4 beds with lots of land or 5 beds - band F properties - bigger than what we need. Our current property is Band A, it's the Band C and D properties that just seem to be missing completely.

Is your 3 bed semi in the 150k to 200k bracket?

if so that’s quite a big jump in price from a three to a four bedroom.

where we are the
2beds are 200-250k
3 beds 275-400k
and then 4 bed 375- 700k

Same here. A fair few 2-beds around, and pleeeeenty of 4+ beds, but 3-beds are like hen's teeth.

That's what ours was, it was just under £150k. I'm in Glasgow by the way where houses are a bit cheaper than they can be elsewhere, but still the ones in our estate and in high demand when they go on sale because they are quite cheap for 3 beds. There is a ceiling on the price really because they are small and most dont have an actual drive, it's all parking bays etc, but they fill a really good gap at the low end of the market.

Problem is, stepping up from here! The ones who could extend in some way have, but our plot (these are new builds or were when we bought) doesn't allow for that.

There are a lot of people downsizing from detached homes to three bed semis at the moment. I don't think it's specific to any one region.

Perhaps doorstep a bunch of agents, be nice to them, show them you are organised and ready to move, and maybe you will get on their list of 'serious buyers to call' before homes hit Rightmove or get sold to cash buyers.

Some places just don't have the style of house you're referring to. We had to.lovw 20 miles to a different town because the one we lived in didn't have any 'middle ground' houses. Either 2 plus box, or 2 plus box on a 'posh' estate (100k more at the time) or 4 beds at double the price. Maybe look at surrounding areas? Or see if there's a work hub option?

So where I am (city in the northwest), most 4 bed detached are new build and really quite small. There are some larger 4 beds but you’re looking at anything up to and past 1 mil really. We upsized to a large 3 bed semi (2 huge bedrooms, one smaller double bedroom) with plenty of potential to extend or add a fourth bedroom. It was just under 500k. Are you dead set on 4 bedrooms? We found it narrowed our search considerably and a lot of the nicer (and larger) properties were 3 bed

No, not dead set on 4 beds, 3 decent sized bedrooms would be fine, or a house that had e.g. a separate dining room that could be repurposed to a study/work area. Unfortunately we're fairly tied to particular areas, my husband doesn't drive for medical reasons so he needs good public transport routes to his office.