Broken hearted over the housing market

[EarthSight]

I'm a first time buyer who's been looking and struggling to buy a suitable house for a while. On Friday, a decent house came on the market that wasn't perfect in terms of the area that I wanted to live in, but I thought I might actually have a chance if I moved quickly.

I got on the phone with the estate agents on Saturday who couldn't do a viewing that weekend as they were full, but asked me to call back today, and then the agent who was in charge of the property would be in too today.

I've just been contacted to say that the house has already received an offer. Although I won't know for sure, when houses in my area receive offers that quickly in Wales, it's usually because a cash buyer from Manchester or Cheshire has seen the place online. Almost all houses under 150k in my area are owned by people who live in those areas. This cooled off during 2023, but it seems like we're going back there again. :(

What hope do first time buyers like me have when we can't even view the place, somewhere that's going to be the biggest purchase of our lives before others put in an offer?? It's really hard to not be defeatist because I know I don't stand a chance against these people who can afford to outbid average working class people like me by 5-10k each time, for their lovely little holiday home or investment in Wales.

No real point to this post but I feel so incredibly down today. It's been a really hard past 5 years and I just can't get a break.

Totally agree.

Originally most of those homes were likely to have been owned by locals who sold them on.

Tax, tax, tax is always many peoples answer to solving a multitude of sins.

The OP has said she does not wish to live in certain areas, unfortunatley to get on the housing market, sometimes your first home as to be far from ideal, in size, condition and location.

You are going to have to toughen up. Even though there is an offer it doesn't mean it will be accepted. I'm selling my house and I had to tighten up quick too. For me it will be whoever can move the smoothest and quickest who will get my house. Not necessarily the biggest offer.

I don't understand why areas of high second home ownership don't have Local Occupancy Restrictions in the same way the Lake District does. It is a big improvement compared to a free for all comers situation as seems to occur in Cornwall etc.

Only some of the LDNP have LOR, and normally it means if you move to the area to work you can buy one of them, if you have lived in the area for 3 years you can buy one. Also if you can prove you have tried to sell the house for a specific length of time with the LOR, it may be removed.

The LOR houses currently for sale in the LDNP, are well in excess price wise for a first time buyer, so interfering in the market does not always work.

There have been so very successful local house new builds in places such as Keswick and Grasmere though.

@LocalHobo My country doesn't have many left, and in some places you can even buy yourself out of them. It's not cheap, but it's within easy reach for many. The thing is, you'd think wouldn't you that with such a restrictive clause that it would damped the house price a bit and means it would sell for less - nope! Makes no difference at all to asking prices here.

@BirthdayRainbow I'm soldering on, and you're right, it doesn't mean it will be accepted. The reason why I felt so defeatist is because of how quickly it received an offer, when it's not even in a great location. I will ask to view it anyway. It's hard not to feel down when you feel powerless and your options are so limited, but it doesn't mean I'll give up....I can't afford to!

@schloss That situation passed a long time ago. These days, almost all properties on the lower end of the market are owned by business owners or holiday home owners hoping to sell to other people with the same deep pockets as they have. Even if people do sell their house to someone local, there is no guarantee that they will pass this on when they eventually sell their house. Imagine what an absolute mug you'd feel if you sold for 10k - 20k less and then saw that house back on the market in a year, and find out it's been sold to an investor. Even though it's had consequences, I don't begrudge working class people in particular for selling to the highest bidder. Some of them were just families trying to get out of living in their current, cramped house.

@EarthSight In answer to your last point, no they are not you are wrong about the LDNP.

I echo PPs advising you to get on Estate Agents' books. They will also then tell you about houses which are being sold "privately".

It's really tough! I've been trying to buy a property for the last two years in London (where I grew up). I'm buying alone.

I had an offer accepted a few months ago (and praying it goes through). I think writing a bio helped. I included my reason for wanting to buy in the area, what I loved about that particular property, and how long it had taken me to save for a deposit (twenty years!).

I also included my buying position (first time buyer), decision in principle, mortgage broker details, ID, proof of address and a screenshot of my savings (redacting sensitive info). In addition, I mentioned the surveyor and conveyancer that had been recommended to me. Good luck OP!

We used to get married or have a partner and then buy a property. Lots of issues are one wage only. Double up with a friend. That’s possible. Not ideal, but possible.

I know in some areas of Cornwall, pp is given for owner occupation only. We have a house on a former hotel site. There is a derelict one up the road. With restrictions as they are it will probably stay derelict. Unless a Housing Association buys it. Most of the village depends on tourism. Maintenance of property, builders, shops, cleaning, letting businesses, pubs, cafes, etc etc. I think some villages were dying. As they were in Wales.

Housing should be cheaper

Op you need to establish relationships with local agents. Ring them every week to ask what's coming into their books but not yet in the market, go into their office in person, be very persistent. The market was hot last time we bought and it was awful, literally 22 people in block bookings, best and final same day. You didn't even get on the viewing list unless you were pre vetted by the agent. Most agents weren't helpful but we ended up on the 'pre market' list with two of them and were able to get viewings the day before or the day they went to market before most people even saw the Rightmove listing.

In the end we leafleted the estates we wanted to live on, selling ourselves as local buyers from the area with children in the local school, chain free with a mortgage in principle. We ended up buying a probate house as their relatives wanted it to go to a local established family (lots of people relocated during COVID to our area driving prices up much like you describe). To be fair we paid market value (they'd had 3 valuations as part of probate process) and I don't think there is scope to negotiate in a private sale, but it was a guaranteed buy and we were all chain free so the sale went through in 9 weeks.

You need to be more proactive.

We are talking specifically about you. You need to widen your search.

I do sometimes think first time buyers are expecting too much in that they are looking to purchase almost ready to move in properties. First House we bought was a tiny terrace not in a particularly good area but signs of rejuvenation. It needed lots of work doing which of course made it cheaper. Internally the kitchen consisted an old stainless steel sink, outside loo, floorboards downstairs all rotten and damp up the walls. The one bedroom ceiling had partially collapsed. The garden was so overgrown we couldn't walk to the end because of the brambles. Needless to say we got it for a price we could afford. Rolled up our sleeves and did the bulk of the work ourselves in the evenings and weekends as we both were in full time employment. Sold it 2 years later for a nice profit and moved on to something bigger and nicer area but again needed lots of work.

I feel you OP. I live in Wales too, and the amount of properties being bought by wealthy English people to use as holiday homes is incredibly annoying.

@Dolphinswimmer this would be great if these properties that need a lot of work were priced appropriately.
I saw a house recently that needed everything redoing. 2 new bathrooms, a new kitchen, complete rewiring, new boiler and radiators, full decoration including flooring everywhere and plastering in places. They had priced it to allow roughly 25k worth of work and even the estate agents said it would take 150k+ to fix everything. They won't even entertain lower offers. We have seen this with numerous properties here.
Not to mention if you are a FTB and need to keep a massive chunk back for renovations, you no longer have enough deposit.

OP I think you need to remember as well that many first time buyers have to compromise: you might not be able to buy in your preferred area and might need to widen your search, you also might need to buy a flat rather than aiming straight away for a house.

My first property was a 1 bed shared-ownership flat in a 'regenerated' (ie still quite grungy) East London borough.

Then I sold that flat a few years later and bought a small terraced house but I had to move out of London to be able to afford a house. I also had to do a lot of work on it myself.

Basically keep going but also be a bit more proactive and widen your options.

Who are selling them to the "wealthy English people"?

I doubt it. The Tories have destroyed the PRS, have reneged on planning requirements of 20% social housing in new build estates, are still selling off houses under right to buy, and their help to buy scheme has lined the pockets of builders like Taylor Wimpey, and their housing strategies have led to homelessness more than doubling when Labour were last in government.

They don't understand the PRS or the markets. That's why housing is in deep shit. Nothing to do with immigrants who generally work hard in this country.

@Propertyshmoperty what about those who don't want to rent off the council? In our area the council make you bid on a property and you get what you given. Private rent you can pick where you want to live and also what house size you want. Private in my opinion is better than council.

OP you might have to put in an offer without actually viewing. We bought during COVID like that. Have you looked at modern auctions?

@schloss in my village it's typically the families of local individuals who have passed away or housing developers.

Example - houses have been built which have been priced extortionately which local people would never be able to afford. The result of this is that wealthy people from England have purchased the houses, showing that there is a demand for it - more houses built.

It's an endless cycle, I am a home owner so it doesn't bother me as much but for the local Welsh young people who are trying to get on the ladder, it makes it impossible for them to compete with.

We live in a seaside town and there are lots if holiday let's etc and just had a look at a website advertising holiday rentals and they are mainly all booked up for months. We have used such accommodation in the past and continue to do so. Can't see We can blame the owners for making extra income or for all I know could be their main income. The need is obviously there. Does anyone else rent for holidays in this country?

@LollyLilly I have been proactive like this previously but all I get is them telling me (in an annoyed tone), that everything goes straight on Rightmove.

@sleepyscientist Yes, but it's unfamiliar territory. I can see how auctions would suit wealthier people, but for those who cannot afford to make mistakes, it's not an accessible buying method at all. To put in a confident or appropriate bid, you'd have to pay a surveyor (£400 - £600) or builder at the very least to come in before to give you an estimate of how much work in needs doing, and for how much. Afterwards, wouldn't it be too late?

I've soon too many nightmares to buy somewhere without see it, and hopefully, it won't come to that.

Well yeah - duh, but my question still stands.

God....I'd NEVER thought about widening my search before. Silly me!