London first time buyer: house v flat and which areas to look at?

[GoldOnyx]

I’m a first time buyer looking to buy in London and I’d appreciate your advice please.

I earn £40k in a stable job in London (public sector), so would be eligible for a £180k mortgage (going by being offered a mortgage 4.5 times my salary). I’m very fortunate to have a £520k deposit, due to an inheritance. My budget altogether is £700k.

I’m unsure whether to buy a house or flat, and which area of London to buy in, and would appreciate your thoughts please.

Re buying a house v flat, my head is telling me to buy a house, for reasons of future-proofing (although currently single with no kids) and as houses are generally better investments and you can do work on them. Re buying a flat, I’m tempted to buy one because it would better suit my current needs and lifestyle (don’t need somewhere big). However, I’d prefer a freehold flat for flexibility and cost reasons, and these aren’t very common, and would also like a garden, so my instinct is saying to buy a small-ish house that I can extend upwards/outwards, with a garden.

Re which area of London to buy in, many areas are of course completely out of my budget. I’d like to live somewhere with good access to transport (within 10-15 mins walk of a tube or train), zone 3 (ie not too far from central London) and that’s pleasant to live in. I rent in Acton (west London), but can’t afford to buy there. I’ve mainly been looking at Streatham, as it’s within my budget, and it’s a nice area, but I’d be very grateful for any other suggestions anyone might have re areas to look at.

Thanks!

Where are your connections?
It's really personal preference.
I'd prefer to be north London.
Even with £700k you're fairly limited, if looking 2 bedroom plus.

What are the main things you want?

Hi Gold Onyx,

Thats really exciting!

I would say don’t be put off by flats although what you are saying is right they are so common in London that you don’t need to worry about resale or holding value. A lot of the Victorian houses are split into flats now and will be share or freehold or the flats might run the leasehold. In these cases you are only dealing with a few flats together so there shouldn’t be huge unexpected charges (just get the roof and structure of house checked in a survey if you are worried).

Streatham is great, the area in Streatham Hill is really on the up: Waterstones just opened and black sheep coffee replacing shoe zone. The houses and streets around streatham common are also lovely. Downside is no tube but the trains are good.

Most people looking at streatham will also look at: Balham (amazing but much more expensive), Tooting (great fun but might be further from parks depending on location), potentially Clapham and Colliers Wood if tube is important. Crystal Palace is also lovely with big parks so I would look there too.

I would focus on having enough space for this stage of life and the next (e.g a second bedroom). Consider if outside space is important to you. Make sure location is good - near transport, shops and gyms/parks if that’s important! Whatever suits your lifestyle. Having expansion /growth potential would certianly be a win and with so much cash you could look to do a doer upper if you weren’t put off by the work!

https://www.rightmove.co.uk/properties/147486254#/?channel=RES_BUY Something like this? 10 mins' walk to the tube, 10 mins' to Muswell Hill Broadway, also close to Crouch End, good schools (not relevant for you now but may be in future), garden, share of freehold, lovely area opposite the woods.

@GoldOnyx
Do not buy a leasehold flat. It is impossible to control service charges and ground rent. Also there will be expensive issues when the lease is below 80 years remaining.
Buy a freehold house.
There are plenty of areas where you can buy a 2+ bed house in London, obviously not central.

https://www.rightmove.co.uk/properties/147658364?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

Hi, from a personal view I would also avoid anything Leasehold. I would also be very careful and get in writing if it is a relatively "new" Freehold property on if there are any additional charges - popularly known as Fleecehold.

From a mortgage point of view, if you have no unsecured debt and you are a FTB you can easily get more than 4.5x your income. I would be careful however with Stamp Duty, as per https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home. You’re eligible if you and anyone else you’re buying with are first-time buyers.
The discount you can claim depends on when you purchase the property.

Discount up to 31 March 2025

You’ll pay:

• no SDLT up to £425,000
• 5% SDLT on the portion from £425,001 to £625,000

If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. Example You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as: 0% on the first £425,000 = £0 5% on the remaining £75,000 = £3,750 total SDLT = £3,750

Discount from 1 April 2025

You’ll pay:

• no SDLT up to £300,000
• 5% SDLT on the portion from £300,001 to £500,000

If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. Example You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as: 0% on the first £300,000 = £0 5% on the remaining £200,000 = £10,000 total SDLT = £10,000

Happy to talk you through anything in a DM, I am a mortgage broker if you need advice on that side of things. I also don't charge fees for arranging a mortgage.

If you want to stay in West London have a look at Hanwell. There are a lot of houses within your budget. It’s quite a lovely area too and close to Ealing for shopping etc.
It really depends what your priorities are. For your budget you could buy a 2 bedroom flat in Chiswick and live in a fabulous part of London, although less return for your money if you are looking at it from investment point of view.

Millions of Londoners live in Leasehold flats.

There are leaseholds and leaseholds.

A flat in a good conversion with a shared freehold is often a good option.

However as you can afford a house I would go with that.

Streatham and West Norwood are both good.

If I was starting from scratch (friends now all in S London) I might look at Walthamstow Central area. E.g www.rightmove.co.uk/properties/154011602#/?channel=RES_BUY

Re flat or house - I'd say buy for your current needs. You are single with no kids and don't need a lot of space. Do you really want to be in a larger house - imagine the heating bill apart from anything else! Don't worry about being able to extend or catering for a future lifestyle that isn't yet in the planning. Buy the home that suits your current place in life.

As for area, this is really down to personal preference. I find certain areas of London just feel "right" for me. Think about where you spend time - where do you socialise, where are your family/friends, do you travel out of London much - which stations or airports do you need access to. Plot them all on a London Underground map and see what lines give you the easiest access to all. Then go to the stations that seem likely places and get a feel for the area. Walk around, see what's there, see how you feel there.

Some great suggestions already, but I'd second Crystal Palace and West Norwood and add in Sydenham and Penge. Penge has some great transport connections (including a fast train to Victoria from Penge East). Penge West has the Overground, which connects with the Elizabeth Line. Massive park right next to you and more parks scattered around (Sydenham Wells, Mayow, Beckenham Place Park to name a few, plus Dulwich Woods). Easy to get out into the North Downs if you like the outdoors (or think you might do in a few years). Lots of bars and restaurants and independent shops plus community vibe.

I'd go for a house, on the basis that you have more options for future improvements and you won't feel the need to move (and chucking money away on stamp duty) in a few years.

Good luck with your search.

Think I would be looking to buy a house if at all possible. It’s so expensive and stressful buying and selling that if you can have minimal moves then it’s a great bonus. You can always rent a room out etc.

Whereabouts do you commute to, OP? With that budget, I'd definitely look for a smallish house that you can extend in future if needed or rent out a room etc. Its amazing how fast life moves on and before you know it, you might be thinking about a family and then have all the stresses of moving as well.

We are not too far from Streatham and we like all the areas that @Dumbles references, but the commute up to Westminster on the northern line is not great. Tooting at least has tube and mainline station, unlike Streatham. But if you are based elsewhere, then there might be better places that MN could recommend.

From an investment point of view a house is best. But I’d personally prefer living in a flat - much warmer and easier to heat, and when I was single, I preferred the sound of lots of people in neighbouring apartments. If Budget doesnt stretch to a house in the area you wanted, you could consider a maisonette with share of freehold? I echo the previous posters regarding staying away from leasehold!!

I agree with this. It's on the Lizzy Line too

Just put the deposit in a saver account and take a well deserved early retirement on some Indonesian island. Your living standard will certainly be higher than any public sector job has to offer in this country.

Checkout Bromley

https://www.rightmove.co.uk/properties/150996932#/?channel=RES_BUY

In your position I’d be leaving London. Buy yourself a big detached house in a nice area of the country. Be mortgage free, and maybe have some money left in the bank too. Then either commute or get a new job.

Being really honest, I just feel a bit stuck. I know I’m in a massively, extremely fortunate position but I can’t find anywhere that doesn’t seem overpriced and that suits me.

In terms of what I’m looking for, a 2 or 3-bed freehold house with a garden and close to good transport links, in a pleasant area (e.g. close to shops, green space and with a London vibe). I just can’t find anywhere that doesn’t seem overpriced. Can anyone advise on where I could look please?

I have to stay in London due to my job and due to not being able to drive (due to eyesight). My eyesight is good, but not good enough for driving.

I’m just so worried about missing the boat, so to speak, with being priced out of the housing market. Also, my parents, who are very kindly providing the deposit for a house for me, are quite elderly now (late 70s) and I feel under pressure to buy somewhere soon because of their age and the 7-year IHT rule.

Where in London is your job? No point people suggesting west London if you work in Greenwich.

Harrow.

Whatever you choose get a freehold or share of freehold.
dont consider lease hold.
don’t perpetuate this ghastly unjust practice.

I used to live near here, fab area and this looks really great to me.

But alternatively, don't rule out further out. This is close to me in zone 6 - a great community, excellent anenities, the area is really quite underpriced compared to anywhere else equivalent and, depending where you need to commute to, it could be really quick on the Lizzie Line now.
www.rightmove.co.uk/properties/155608685#/?channel=RES_BUY

Thanks Teenlifemum! It’s in Westminster/St James’ Park.

I really think you need to get the leasehold fear out your head and view flats. You can’t be in London and only look at houses it will massively narrow your search.

Just don’t go for a new build with leasehold, as long as there’s reasonable charges you’ll be fine. Along with the rest of london

get a flat with a leasehold like the vast majority of people in London. you can get a better area and it is cheaper to heat and maintain than a house.

if your work is in Westminster, I'd look only west and south at locations that are on the same tube or train line as your work.