New housing in the UK

[RichTea90]

Sorry this is a bit of a ranty post but I live in South East England I’m 33 years old. Trying to get on the property ladder with a 40k deposit and a joint income of £119k. We are looking at 3 bed new build as want to start a family but they’re all so expensive and about 30-40k out of our budget.

Why is the government letting all of these greedy house building companies build and sell properties that are just not affordable to normal, every day people / couples / families. I think it’s truly scandalous.

instead im staring at Rightmove looking at a lot of properties that are so outdated or falling down and we just don’t have enough money to / disposable income to then do the property up.

feeling rather stressed 😩 is anyone else in the same position or understands what I mean

It’s definitely an issue in the South as house prices are out of control, for context we live in North Yorkshire, beautiful new build estate. Here you can get a lovely three bed detached , two doubles , one single, two bathrooms for £280k. 4 bed detached starts at £360k.

Oh that sounds lovely! 😍
360k down here would only really get you a 2 bed new build in the areas I’ve been looking at - a house if you are lucky. Due to my partner’s work, we are stuck to being near London or West London due to how niche his job is. I work remotely so I can work anywhere. Problem is all my support network is down here too, but I definitely dream about relocating up north. You get so much more for your money up there.

New build and outdated / falling down are not your only options!

Buy a 2 bed
Buy something that needs decoration etc

I honestly cannot find anything. I look on Rightmove & Prime location almost daily. Where all the good quality housing these days??

I work from home and need an office… will outgrow a 2 bed too quickly if starting a family

Make sure one of the bedrooms is big enough to accommodate a desk as well and use it as both? That's what I do (we also have a separate office room as we both wfh sometimes, I work fewer hours so took the bedroom desk but I don't mind it at all as it doesn't effect my sleep etc).

Have you looked at the 'own new' scheme being offered by house builders? Great scheme that will save a lot of money.

Also you know you can barter with new builds?

There are compromises people make for London jobs...smaller houses, or flats, or commuting, or changing job. A two bed or even a flat with family support nearby might be very doable. If garden had room for a home office, they don't have to be an exorbitant add on. Maternity leave might be time to deal with a fixer upper...sometimes it can just be superficial decoration.
A new build won't necessarily be better value, an older uglier bungalow priced lower with a garden might have room for an extension as your family grows and take less earning power
South East is a large area...

I work in a corner of the living room - you just have to juggle it around, choose furniture that works well, and make it work.

Rightmove have just reported a significant increase in listings from last week. It might be worth holding your horses a month or two to see if that trend continues ? If it does you might not have to overpay for a new build. They usually loose value for a year or two after completion and are often blighted by snags, some are not even not true freehold and come with estate management fees.

Whereabouts are you looking?
There are definitely cheaper areas commutable to London.
Where does your DH work?

I wouldn't be looking at a new build - too many snagging issues, tiny gardens full of builder's rubble, and overlooked in all directions.

It's called a housing ladder because you start low and work up. I went from studio flat, to 2 bed flat to 3 bed semi when I sold up and moved in with my partner. There's no way I could jump straight into a 3 bed semi without equity from my previous sales. If you want to stay in the South East you will need to readjust your aspirations, I'm afraid, and be crampt for a while.

Are any "not quite new" new builds coming onto the market? There is often a premium for buying something brand new, and that looks like it might be the 30/40k extra you need (ie 10%).

I’m looking at Hampshire, Surrey, Berkshire. Even open to West Kent. I suggested Crawley / Horley, but partner not keen. Partner works remotely currently but may need a job nr the film studios such as Pinewood, Shepperton etc. I am wanting to reduce his commute time.

I do hear what you are saying about new builds…

I know you can barter with them tho. The size we are looking at (3 beds) are like 450k+ and with the current interest rates, monthly payments are high !! he wants somewhere 400-420k but it’s so difficult unless you get a fixer upper

Also considering 2 beds so we could put a garden room in but most of the new build gardens are teeny tiny. I have found one 3 bed house within budget in west Kent that becomes available in November. His commute time would be 1hr20 tho. I guess it’s not too bad, but not ideal either.

I was in a similar position. Just outside the affordability. I do agree you pay a premium for new build. I ended up with a 20 year old house two train stops away from my ideal location - also West London. Interestingly when I bought two years ago EVERYTHING in my budget was an ex rental. So a bit tired and bland. Worth the work to do it up cosmetically but still have a fairly modern property.

Are you looking on the Waterloo line? About £480k? What about Shepperton, Staines or Bracknell? Plenty of not quite new builds around those sort of areas.

You are being really spoilt and demanding. Why is a new build so important? There are loads of decent houses and flats that aren't brand new, that is what the majority of people buy.

Also the govenrment doesn't "allow" housebuilders to charge the prices they do, they charge what the market will bear.

Aww, that’s lovely - well done!!
I am also looking at older properties. Yep I’m looking at those areas. Partner doesn’t want to spend £480k. He wants to stick to £400-£420k.
I am looking at Farnborough & Aldershot now.
Chertsey seems nice but out of our budget.

What about a shared ownership new build property? It would reduce the initial size of your mortgage and you can build up to 100% ownership. However, look at the small print as I had to sell mine as shared ownership and couldn't put on the open market until 3 months had passed with no offers.

You need to start lower down the housing ladder. Look at cheaper areas or 2 beds that need doing up.

I’ve considered this, but to be perfectly honest, it sounds quite complicated and a bit messy. I don’t quite understand how staircasing works as well as I’d eventually want to own it outright.

thanks for the suggestion…. I found a S/O in Cranleigh that looked nice.

It’s difficult because we are a couple in our mid 30s and we have both owned houses before. We are not your traditional first time buyer, so we cannot do the whole buy a flat, 2 bed, then build up to 3 bed kinda thing, because that’s just not where we are at in life. We need a decent size property that we are going to stay in likely for the next 6-10 years really. So it’s more a case of being smart and making wise choices than “spoilt” and “demanding” as some comments have suggested.

I appreciate all of the info here xx

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I wouldn't write off doer-uppers. They don't always need expensive structural or remedial work - just general updating that can be done over time. Changing flooring and repainting can make a big difference to a house that might look overwhelming at first glance. It's also good timing to take on this kind of work before you have children. You're more likely to add value to the property, which will help if you need to upsize later.

Ok so you've owned houses before - then you should surely already be on the "ladder" unless something has happened and you are no longer home owners?

The spoilt comment came from your OP where you talked about houses being "outdated or fallign dwon" there are plenty of perfectly fine "second hand" houses out there that may just need a bit of redecorating or work. It is how many people afford houses.

I agree with you.

We are in a very strong position financially - joint income on £160k, deposit of £150k thanks to equity rise from previous property and we still struggled to buy a 4 bed in a decent area south east.

Housing prices are out of control and I feel for people who aren't able to get on the ladder early in life.