Owning a house in London, regardless of your status, is possible. You just have to be a little innovative and flexible with available options. It requires widening your scope for the vital first step. The UK government also has programs to help first-time buyers achieve their dream. This is through encouraging home building firms to increase new builds. Below are 7 ways to buy your first house in London.
1. Consider low priced areas.
The budget is usually low when you’re a first-time home buyer. London is a big place with a variety of options of homes for sale. Everyone would like to own a home in places such as Richmond, Fulham, Knightsbridge, and Clapham. Therefore, you have low chances of owning property in such areas on a low budget. Consider looking for a home in other low priced areas including:
- Barking & Dagenham
2. Find homes in less desirable areas.
Some areas close to traditional locations in London are less desirable for most homebuyers. Areas such as the Seven Sisters, Elephant and Castle have less expensive properties for sale. They’re a cheaper option to places like Highbury, London Bridge, and Bermondsey. These less desirable areas are a bit further from the London city centre but with good transport links to town. Even when you work in London, you can easily catch the Tubes, London Buses, and Overground Trains to your destination.
3. Team up with other buyers.
When looking for new homes for sale in London, it’s possible to buy a home even without enough money. A wonderful idea is to team up with friends or another couple to share the cost. You can pool resources to buy a flat or home. However, ensure to work with a reputable solicitor to handle all the necessary paperwork in the right way. It will help lessen chances of disagreement between your co-homeowners. This is a great idea to buy a new home that goes beyond your budget.
4. Opt for homes that require some remodeling.
Another idea for a first time buyer to own a home in London is to consider homes that might need some little refurbishment, structural work, decorating, or upgrades. There are usually lower priced and affordable for people like you. It’s a wonderful idea to invest in such homes since installing a new bathroom or kitchen might be the only requirement to make it meet your expectations. A home less than perfect comes at a low price than one with everything in place. You’ll just have to get a cheap builder to customize the home to your requirements.
5. Shared ownership.
This is where you buy about 25 to 75 percent of the house and pay rent for the other portion. A local authority or housing association usually manages this homeownership arrangement. You become sole occupiers with a chance to purchase further shares in the property in the long run. Shared ownership opportunities in London are in areas including:
- Isle of Dogs
This is available for first-time buyers on new houses with a value of up to £ 600,000. This requires having a minimum deposit of about 5 percent. The help to buy program offers an equity loan of about 20 percent of the total purchase price of the new home. You’ll have to get a mortgage to cover the remaining 75 percent. Luckily, you’ll not be charged any fees on the equity loan during the first 5 years.
7. Bottom line
As you’ve noticed, it takes some extra effort to own property in London. You can use a combination of one or two ideas above to purchase a home. Additionally, ensure to find a reputable properties listing with a variety of properties for sale in London.