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!

Link: www.rightmove.co.uk/properties/154882832#/?channel=RES_BUY

This is lovely in Crystal Palace. 3 bedroom end of terrace house for sale in Pleydell Avenue, Crystal Palace, SE19

Good road, near the station and triangle

If you're in westminster for work, Penge East. The line is so fast to victoria- about 17 minutes on the fast one and you also have 10 minutes to Brixton for going out out. Penge has loads of young people now (but also families) and lots of things like microbreweries, Sunday farmer's market, South facing festival in the park. Walk up to crystal palace in about 20 minutes. You're also on the overground for going out in East London.

Also your coming back late late plan can be to get the night tube to brixton and then a shortish uber.

It's much faster to commute than Palace, which is on a slower line.

These cottages are cute (lots of these for sale rn):

https://www.rightmove.co.uk/properties/153193631#/?channel=RES_BUY

Whole house: https://www.rightmove.co.uk/properties/151940723#/?channel=RES_BUY

There are often some amazing massive flats with very long leases that come up round crystal palace park for 650k ish.

I agree with all these suggestions, and would also add Forest Hill, Honor Oak, and Brockley. You will get much more for your money in areas like this than Streatham. I would always buy a house if at all possible rather than a flat.

So much choice! I recall Kirsty Allsops wise words here. Why are you buying 2 or 3 bedrooms when you could buy a 1 bedroom in a fabulous location.
Myself I would look central , Soho, Bloomsbury, that gorgeous bit by Queens Square. And enjoy the wonderful things central London has to offer. Imagine how much fun it would be to walk to work when there is a transport strike!
And you could walk home from the theatre.

East London further in is quite hip and nice (and will go up).

https://www.rightmove.co.uk/properties/144782912 This is a beautiful street near the tube and underneath the pebbledash, a lovely house.

https://www.rightmove.co.uk/properties/149637395 Cute little house in lovely wanstead

https://www.rightmove.co.uk/properties/150006665 In Walthamstow Village - direct to Victoria on the tube

Many would agree with you, but OP is set on a freehold house, even if it’s somewhere rough as badgers, instead of a leasehold flat somewhere delightful! Horses for courses I suppose….

Looked at in investment terms, I’m sure there are examples of leasehold flats in London which soared in value over the past 10 years when the area improved. And freehold houses which stayed comparatively stagnant because the area didn’t, and likely won’t ever, gentrify.

Londoner here, I would go for as central as you can if going for a flat, you might be surprised what you can get for 700,000. But it all depends on your lifestyle really, if you aren’t going to be out at night much in the week and not fussed about a fancy gym a house near the green belt with great transport into central London is probably the nicest option. Certain parts of London are very overrated with limited food shopping and frustrating transport but they have a Gail’s and a book shop so people think it’s wonderful.

I did spot a one bedroom freehold house in East Dulwich which area is infrastructure rich. Two Marks and Spencers, which I believe away fans chant at Dulwich futbol matches as an insult, a lovely library, a gorgeous cinema, my dentist, a lovely swimming pool, my opticians, and many lovely eating houses and Kings College Hospital and the Maudsley Hospital as well as a court and another lovely library just over the hill in Denmark Hill/Camberwell Green.
I don't live in East Dulwich myself but adjacent.

Couldn't agree more.

I would suggest you buy a small two bedroom house. Crystal Palace and West Norwood is nice.

Another vote for West Norwood 👍

100% agree.

East Dulwich is lovely

https://www.rightmove.co.uk/properties/153452897#/?channel=RES_BUY

OP really wants a house though, and is willing to compromise on area.

Also that flat has such a small kitchen! You’d want to extend it by knocking through into the box room next door. But then it’s a 1-bed flat for £650k 😗

That house is great value and Southfields is a lovely area with Wimbledon Park and Common close by; also good local shopping as well as more options in both Wimbledon and Wandsworth. District tube and mainline at Putney.

South east is cheapest, look at Deptford, New Cross, both zone 2, Greenwich might be worth a look don’t know how expensive it’s got now. maybe further towards docklands where the 02 is. Lewisham is cheap. Big houses there.
you might find something closer east like Roman road, if not Wanstead, ilford, Romford possibly.
last time I went to Leyton it was shit hole but cheap and houses.
Leytonstone is better.
good luck
.

I wouldn’t consider buying
anything until at least February now. There’s not much on the market at this time of year. Check out rightmove sold house prices (put in stretham and then press search). Have a look at what has sold and for how much. Then have a think about which stations you’d like to be close to and have a browse. Look for something with two double bedrooms so you can have a lodger/airbnb if you want (up to £7-k tax free).

Leaseholds are all different. My friend lived in one that was sort of a cooperative rather than using a management company and it was much cheaper. However freehold/house would be my preference. Having a lodger for 2-5 years would mean you could stretch yourself in the short term (or have money for Ubers if it’s a bit further out)

I sold my flat. The service charge kept going up and up.
I left 2 years ago and still got a bill for 5k last week for the period before we sold.

My point is, if you buy a flat you are at the mercy of ground rent, property managers and your neighbours. Freehold if you can.

You need to have a think about how your life might evolve.

I've moved more and more central in my London life. I'm single and don't have kids and now won't. I really value being able to walk most places.

Leasehold has disadvantages but if you want central it's the only option really.

One of my close friends moved out to one of the areas mentioned upthread to get a bigger place and is now firmly back in zone 1 in smaller property as the commuting wore him down so much.

Other friends are super happy in suburbia. Only you know what will work for you.

I’d buy the flat in Kennington that @bobbobricardo beat me to linking. Great area, walk to work, quick night bus or taxi home, zone 1.

I would 100% go for a flat. Living in a house alone somewhere in zone 6 would feel so lonely. House also often requires repairs and it may be hard to maintain it + the garden on your own especially if you are not that into it.
No need to be afraid of leaseholds. Plus many flats especially in mansion blocks etc have a share of freehold and you have a say on choosing a management company etc and often this results in lower service charges where you have more control.

I don’t agree with feeling more lonely in a house in zone 6 as you are more likely to know neighbours and have a stable community where you can develop friendships. Living in flats often mean neighbours who don’t stay long or air b&b. But my choice would depend on lifestyle, from experience you naturally go out more when you live centrally and services like gyms are on another level. I wouldn’t dismiss the house in the burbs as some places get you to better places quickly and having your own front door and peaceful garden if that’s your thing is worth it. Another thing to take into account is travelling, if you travel a fair bit, living close to Heathrow express /Elizabeth line is a huge plus.

@Sadandworriedone I would go for something like that too in OPs situation