Kez Duxbury spent £390,000 on his initial house, a two-bedroom apartment In 2018, at the base level of a newly constructed project in Upton Park, London.
I was fortunate to get an inheritance of £20,000, which amounted to a 5 percent down payment," he stated. "Additionally, I utilized the Help To Buy equity loan program.
At the age of 31, Kez resided there with his spouse, and they celebrated the birth of their son in 2020.
The leasehold apartment came with a B1 form indicating that the fire risk associated with the building’s cladding is minimal, hence no corrective actions are needed.
So, while there was cladding, It could be mortgaged, with a monthly service fee of £360. At first glance, their leasehold apartment seemed to have no significant problems. However, when they decided to sell in 2024, it took them 11 months to find a buyer, and they ended up accepting an offer at the same price they had originally paid six years prior.
Throughout London, Kez’s situation is far from unique. As indicated by Hamptons Research, from 2016 to 2023, flats in the city saw a growth of 3 percent; conversely, terraced houses experienced an uptick of 18 percent.
Zoopla presents an even bleaker scenario, showing that London apartment values have remained static during this timeframe, indicating a 24 percent decrease when adjusted for inflation.
In the UK, from 2020 to 2025, the value of apartments rose by only 7 percent, whereas the price of houses went up by 24 percent.
While prices have picked up slowly in the last couple of years, for many, like Kez, it’s too late.
It genuinely seemed as though we were trapped with little recourse. For six years, we lived in that apartment believing we were taking all the right steps to progress — just following the path set by our elders. By the conclusion, however, it felt as though we had fallen victim to a system that had previously benefited our parents.
Leasehold vs freehold
Freehold: When you have freehold ownership of a property, you also own the land it stands on without any specific expiration date.
When purchasing a freehold, you must handle the maintenance of both your property and land yourself. It’s important to set aside funds for these expenses.
Most houses are freehold.
Leasehold: Leasehold refers to owning a property for a specific period, essentially renting it from a landlord who holds the rights to the entire structure or land beneath it.
Typically, your lease duration falls within the range of 90 to 999 years. You can find the specific term of your lease detailed in the leasing document you have with the freeholder.
Many apartments and townhouses are held under leases. This indicates that although you possess your unit inside the structure, you do not own any portion of the actual building itself. Additionally, you could be required to pay regular maintenance fees either every month or annually.
The apartment first hit the market in August 2023 through Foxtons, which priced it at £475,000. "No potential buyers came forward during our time with them," he commented. "Moreover, the real estate agent handling our case was dismissed because of his tendency to make unrealistic promises to clients."
The family wasn't alone in facing difficulties with selling properties. Kez mentions that a neighboring property was purchased for £350,000 but ended up being sold on the open market for £320,000. "This was when I started feeling somewhat concerned."
Six months later, the pair shifted their search to an agent based in Canary Wharf; however, they discovered that "the market conditions were different" compared to those in 2018.
At that point, nothing seemed more secure than property investments, yet none of us foresaw a worldwide health crisis. Individuals didn't have to reside in Zone 2/3 unless their jobs required them to be there for at least five days each week. Due to the coronavirus outbreak, demand surged in other regions, but this wasn't reflected in Canary Wharf since there wasn't much interest in that area.
What we anticipated was an unending stream of individuals heading towards London, but that scenario was not occurring anymore.
The pandemic also hindered the anticipated revitalization of the Upton Park neighborhood, and following West Ham’s relocation to their new stadium, the area lost much of its dynamism. As a result, eateries and dining establishments were gradually taken over by gambling outlets.
“Covid has stuffed How our generation views real estate has changed. Those who experienced living in London during the pandemic vowed they'd never purchase property there again. Initially, our strategy was to remain for the five-year duration of the interest-free period with the Help to Buy loan, which would ideally provide us some leeway as we turned 30 or 31. However, due to COVID-19, these plans fell through."
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Keezh, who serves as the finance head at Press Box PR, was still in charge of the finances. a home loan featuring a minimal interest rate, However, those exploring his apartment also had to deal with higher costs associated with loans.
There has been historical shortsightedness; everybody believed that low-interest rates would persist indefinitely, and we became too comfortable with debt being so affordable.
Once they got an offer, it amounted to £350,000, which was £40,000 less than what they had paid.
Thanks to the Help to Buy equity loan, if the value of your house decreases, you have to cover the difference, but we were unable to manage that.
Finally, in July of the previous year, they located another purchaser who matched their original purchase price, prompting the family to relocate to Cambridgeshire, where Kez now faces a daily journey lasting two hours. The family acquired a four-bedroom row house for £434,000 and received certain monetary benefits from the developer as part of the deal.
Although this house is likewise a newly constructed one, Kez ensured it had freehold status to dodge hefty service fees.
My spouse feels more content with newly constructed homes due to the 10-year warranty. Our experience in London did not deter us from choosing new builds since this will be our permanent residence, and I wouldn’t be shocked if we stayed here for at least another two decades. We have decided to invest in a town that is still under development, which requires some patience, but we’re ready for it.