Episode 2 Cherry Healey: How to Get a Life

It's estimated that, last year,

over 100,000 of you under 30 became first-time buyers.

And I know that almost all of you

aspire to pick up the keys to your own home.

'Is that a structural survey you need doing?

'It's the buyer's survey.'

Pretty sure I said industrial.

'You're buying a house, not an industrial unit.'

-50p? You're joking. Put it in for deposit.

-Is it?

No, you know what it actually is? It's a party popper.

HE LAUGHS

And that's what this programme is all about -

telling you what you need to know about property renting and buying,

as well as catching up with our

wannabe home owners here in this amazing

city of Leeds, as they desperately try to get on the property ladder.

I came in with a cheeky offer of 110.

Unfortunately, that got rejected.

I think I can stretch to 115,500.

I didn't know that you had a search on,

that you're not at risk of radioactivity!

I think this is going to be difficult.

Last week, our Leeds residents took their first steps towards

getting a foot on the property ladder.

This week, they're farther down the buying process,

but we've still got more tricks of the trade to help them

seal the deal, so they can pick up the keys to their first home.

So, will self-employed roofer Craig

and his girlfriend Sarah find

a 5% deposit mortgage scheme?

Will 23-year-old Ailsa

successfully navigate her way through all

the housing jargon and finally move into

her first home with her best mate Lauren?

And we're saying our very

first hello to Shree,

who's struggling to find his perfect bargain bachelor pad.

Helping all our would-be savers and buyers is Richard Fenton.

He's got 15 years of financial experience

and will be with them every step of the way.

On average, people buy their first property around the age of 37.

You think the ideal age to get on the property ladder is 27 or less.

So that's a massive difference.

I know that, because you told me in a nationwide housing survey

we carried out among 18 to 29-year-olds.

I also learnt that, in order to save some dosh for a house deposit,

more young gentleman than ladies

still live at home with Mum and Dad.

Nothing to do with the laundry, I'm sure.

So, if you fancy owning your own place before you're 37,

we're here to provide some solutions for you that might help -

schemes such as only needing a 5% deposit, buying with

mates and how to rent in some of Britain's most expensive cities.

But, before I indulge any more interesting titbits,

we're off to Leeds to see how

our wannabe first-time buyers are getting on.

24-year-old Shree has been carefully saving for years

and is currently living just outside Leeds in Harrogate.

Harrogate is a lovely town, it's an old spa town

and it has a lot older demographic.

It's not really designed for a 24-year-old.

So, he's desperate to swap the cream tea brigade for the bright

lights of the city centre.

Leeds, on the other hand, is...

It's got two unis, it's full of young, vibrant people

and that's where I want to explore more, really.

And I'm in a very fortunate position

where my parents are helping me out

and I've got some money saved away myself,

so I'm putting those two together to put together a deposit for a place.

Shree's mission is to find and buy this type of professional city boy

pad, a chic apartment with all the mod cons in the heart of the action.

'I think I can drive a bargain.

'I would typically go 20 to 25 grand below with my first offer.'

# Am I crazy or am I blind... #

Was I close with the offer or...

My offer was, she said, several thousand pounds under.

Every seller's different. They'll be some people who desperately need to

sell in order to get their new place

and they'll be some people who are trying to just free up cash.

They don't need to sell, so they want more for the flat.

Time for Richard to meet Shree

and find out where he is on his property adventure.

-Shree.

-Rich.

Hi, pleased to meet you.

With your deposit between 20 and 30,000,

what are you looking at in terms of the purchase price?

So, if I'm looking at places, flats listed for around 150, 140K

I would go in for a 120 offer,

to start off with, maybe push up.

And because there's such an abundance of these properties,

I'd rather do that several times

until hopefully, maybe, someone is just desperate to sell

and I get lucky and get one for around 125, maybe 130.

So, you're hoping to go in and shave off as much as 15,

-£20,000 off the asking price.

-Yeah.

-Right, OK.

-So you're out for the bargain.

-Yeah.

I think you should always be out for the bargain, no matter what you do.

We were hovering around a figure with the deal

of around about 125,000. That made me think...

-There is a reason.

-I'm loving this. There is a reason.

-Tell me the reason.

-Stamp duty.

-Brilliant.

-Fantastic.

-I would like to not...

Not pay it.

Yeah, keep as much money as I can to myself.

-All right, that's brilliant.

-That's pretty much it.

I was hoping that was the decision, so that's absolute music to my ears.

More on stamp duty in a minute.

Shree seems really clued up on the property game.

He's got a good deposit of around 30 grand

and has been looking at flats around the £140,000 mark.

I think the thing that's really stood out for me

with Shree is that it's the deal and that's what he's looking for.

He's looking to get himself a bargain.

I don't think he's going to buy unless he feels

he's got extremely good value for money.

It's kind of nice having someone with Richard's pedigree telling me

that I'm on the right path and I'm making the right decisions.

But, the one offer he's already put in a flat in Leeds was rejected,

so is he being too optimistic

about bagging a bargain?

-Richard, welcome again to the lounge.

-It's good to be back.

What point was Shree making about stamp duty?

Well, it's a tax that the government adds to all properties over

and above 125 grand.

And it has to be paid when you exchange contracts.

So, any property under the magic 125 grand, you don't

-have to pay a bean in tax?

-Absolutely.

And there is a bit of good news.

Some mortgage lenders will even pay your stamp duty as an incentive.

Cracking tips, Richard, thank you so much.

Before we head back to Leeds to see our wonderful residents,

I sent Radio 1's Tina Daheley on a little property mission.

We know that lots of you can't afford to buy at the moment,

so we're looking at renting too.

We also know that thousands of you need to

live in or around the big cities for work.

So, how do you find somewhere

that's affordable, in a good area

and not a complete dive?

I've come to the most expensive city in the UK to find out.

Hello, London!

It might not be everybody's cup of tea,

but you can't deny London is bursting with energy.

More than eight million people live here, speaking over 100 languages,

but property is expensive, therefore renting is too.

Belgravia, Primrose Hill, Mayfair might take your fancy.

How about a penthouse at One Hyde Park for 140 million?

For me, it's all about Chelsea.

I'm about to check out this place, worth just £11 million.

'It's a three-bedroom apartment, split over two levels.'

Oh, my goodness!

I can see myself entertaining here.

So, this is what you get for 11 million.

Walk-in wardrobe.

Very nice.

'It's got super luxurious bathrooms.'

It's the toilet.

Even if you've got £11 million, rich people still have to go.

'There's also two terraces, but that's not all.'

There's an actual hot tub down there.

This is gorgeous. But, let's be real. It's just dreaming.

Wages here may be higher,

but the gap between average income and average house price

is still the widest in the UK, which means

central London has the lowest level of home ownership in Britain.

That's why so many of us rent.

The average rent for a one-bedroom place is around £1,100 a month,

way too expensive for most of us, so bring on the flatmates.

But what if you've come to this

magnificent city and don't know a soul?

This is one solution.

Speed dating for flatmates.

I'm going to try it.

'It's called speed flatmating and happens every

'week across the capital and it's for landlords and tenants.'

And now, love, you could be my roommate. Is that possible?

Well, I don't know enough about you yet.

Ideally, I'm looking for two girls, as they have...

Whoa, whoa, whoa.

SHE MOUTHS

-Looks like a nice place.

-It is a nice place.

-I live with a Romanian guy right now.

-OK.

And he says he loves Indian girls.

I don't know if that's a good or a bad thing.

So, surprisingly, that was not as intimidating as sitting on someone's

sofa, being grilled about whether or not you're a good flatmate

or a bit of a psycho.

So, speed flatmating gets the thumbs up from me.

Flat sharing with strangers, though, isn't for everyone.

I went to meet out-of-towners Laura and Paul.

They're best mates,

both 24 and think they've cracked the city rental rat race.

After a couple of weeks of looking, they found their perfect pad.

It cost 1,250 a month

and is five and a half miles from the centre of town.

How did you feel about paying so much to rent in London?

We wanted to be a bit closer to the city, so we were quite happy

to pay a little bit more for that good location.

-Do you think you found a good deal?

-Yeah.

-I think so, yeah.

I think we got quite lucky with the flat we got, so we're really pleased, yeah.

For their money, they get two double bedrooms and a balcony.

What would your top tips be for finding a place to live?

I think the two things that you need to have are

your money ready to go

and your references need to know that they'll be contacted

to get all the paperwork sorted,

because from when we put the offer in,

we had 24 hours to have all that sorted, which you think is

lots of time, but it's not really, when you have to do it.

Especially if you're working full-time, as well.

That was quite a stressful afternoon,

but we managed to get it done.

-You have to be decisive.

-Decisive.

-Definitely.

-And organised.

Finding a place to rent in London was easy for Paul and Laura,

but getting the rental rat race right is a tricky game,

so I've got a couple more top tips to finding that perfect place.

Lettings agents are specialist and useful,

but watch out for expensive admin fees -

things like charges for credit checks,

drawing up inventories, final cleaning or just handing over a key.

Smartphones mean all those useful property apps can travel with you

and they're updating all the time.

You can react fast and you'll need to,

because several properties will go before you even arrive to view them.

And don't rule out the old school.

Newspapers, especially local, are good,

and don't forget specialist listings too.

Every little bit helps.

But is value for money more important than postcode?

This is Mission: Get Your Money's Worth.

One of the things I'm always hearing is, "Go and see the suburbs.

"The further out you go, the better value you get."

So, I've come to Croydon.

It's one of London's more affordable boroughs to rent in

and is 45 minutes out of town, but with trains running through

the night, transport shouldn't be an issue

and there's buses and trams too.

'So, what would the money Paul and Laura

'are spending in Clapham have got them here?'

Wow.

This is less than ten miles from central London

and it's the same price as the flat Paul and Laura are renting.

I didn't realise there'd be this much of a difference for exactly

the same money and the difference of about six or seven miles.

It's not as trendy, the suburbs aren't. Croydon, not necessarily.

But...

I'd no idea you could get properties like this.

This place is seriously lush, but we're all different

and it's all about deciding what your priorities are.

Do you want to be close to your friends, a Tube,

a park or do you want to avoid a long commute to work?

All those decisions will affect the price you pay.

Time to head back to Yorkshire and reacquaint ourselves

with 23-year-old Ailsa and her best friend Lauren.

They currently live in this back-to-back terrace house,

but are keen to leave the neighbourhood behind them.

There were plenty of warning signs not really to rent this house.

The neighbours thinking Ailsa was a prostitute.

SHE LAUGHS

When Ailsa's grandma sadly passed away,

she had one wish for how the £45,000 inheritance should be spent.

She'd always said,

"The money that I leave you is to buy a house with."

With the bank of mum and dad and grandma behind her,

Ailsa aims to find, buy and move

into her new home within the five months

we've been filming with her.

And she's interested in this three-bed house with garden

in the more picturesque area of Pudsey.

It's on the market for a sweet 100 grand.

Her parents have been with her every step of the way,

but, having the help and advice can be problematic.

There's been a few arguments.

We've made up and everything, but there always seems to be

something else that I feel like she's left me out of it.

But Ailsa's going to need them,

as she wants to put in an offer on the place.

So, how do you do that?

When I go into the estate agent...

You say you want to put an offer in.

Yes, I want to put an offer in.

But is there going to be, apart from prices and things like that,

are they going ask me something else?

-They'll ask you what your offer is.

-Right, OK.

-Let's get over that hurdle first.

-Yeah.

It would be really nice if we could get "yes" or "no" today

-and get it all done and dusted.

-Yeah.

-What are we going to start with?

-94,750.

Right. So, we start with that and we'll see what happens.

Ready to make that big step on the upward ladder of life?

Oh. Big step.

Typically, it's better to put in a lower offer,

although not too low, as you risk not being taken seriously.

In England and Wales, the middleman or woman is normally

the estate agent and this is who you have to put your offer in to.

We talked about 94,750.

-AGENT:

-OK. Well, that's great. So, 94,950.

-Is that what you're thinking to offer?

-94,750.

-750.

That's fine.

The minute we get any information, we will give you a call

and just let you know what's happening with the offer.

Nice to see you.

Now, all Ailsa has to do is wait.

I do hope we get an answer before we have to go home.

Richard, what are your top tips for those who want to put

an offer on a property, but are going it alone?

Well, first of all, don't get emotional, which is

very common for first-time buyers.

Stay calm under pressure.

Number two, check out similar properties in the area,

using the Land Registry website, or other similar property sites

to see what houses have sold for in the local area.

Number three, consider putting in an offer of

10% less than the asking price.

It's likely to be rejected, but it is the start of negotiations.

And, finally, remember, it's much easier to increase your offer,

rather than reduce it, unless there's a serious problem,

such as the survey results.

Cracking tips, Richard. Thank you so much.

Now, remembering all of that and staying really calm

under pressure is a test for anyone,

especially if you're going it alone.

So, why wouldn't you buy with friends?

But our survey said that only

a third of you would even

consider buying with your bezzie.

So, I asked Tina Daheley to find out

what are the pros and cons.

LAUGHTER AND CHATTER

According to our survey,

nearly half of you that have rented have rented with a friend.

An obvious choice, of course.

LAUGHTER

It also revealed that one of your biggest gripes

with your flatmate, good, old-fashioned household chores.

'So, there might be some truth in that old expression,

'"Never mix business with pleasure." And it's probably for that

'reason that nearly half of you would not consider buying with a friend.'

But, with first-time buyers needing such huge deposits,

buying with a mate could be the perfect way of getting that

first step onto the property ladder.

'To find out how it can work in practice,

'I've come to Cricklewood, North West London,

'to meet three lads who are putting this idea to the test.

'Ilan, Josh and Nick bought a three-bedroom

'maisonette for 375 grand.

'They're from the same hometown and have been mates for years.'

It's quite an usual to be so... You're, what, 26?

To be young, living in London and decide to buy somewhere together.

Most people just rent.

Yeah, but I think we're all keen to get on the property ladder quite quickly.

Was it an easy process?

Pretty difficult, to be honest. We looked.

We had to expand the area we were looking at.

We looked at this place, it was too expensive.

We just got very lucky that, a year down the line,

it came back onto the market, they dropped the price a bit.

'Living with their parents, they all saved a tasty 20 grand each,

'so, on top of hefty fees and stamp duty,

'the boys handed over a 15% deposit.'

You've got to be pretty disciplined if you're young.

-Don't you want to go out, spend your money?

-He's the disciplined one.

I think us two are not the best example of being disciplined.

He's much better at managing exactly what goes in and out.

Now, what happens if one of you decides you want to move out?

It'll be a little bit tricky before two years.

The contract that we've got between the three of us

basically makes it quite hard to do that.

You drew up a contract between yourselves before you moved in.

-Yes.

-But is it legally binding?

-Yeah.

-Yes.

-Yeah.

-Can anyone do that?

-Yes, effectively.

Well, you take it through a solicitor,

but effectively, as long as it's got your signatures on it

and it's been approved, it's all fine.

So, you've come up with an agreement of what you think is fair

if your circumstances change.

There's one thing at the bottom of the contract that says,

"For anything not in the contract..."

Majority rules, basically.

-Everything's covered.

-Yeah. If we want to evict him, we can.

LAUGHTER

It's a great clause.

'The boys have clearly got it covered.

'There's even a clause about girlfriends,

'so the three of them are always in control.'

There's the rule in there about no key,

so even if, say, Nick had a girlfriend but he's not here

but the girlfriend's letting herself in, that's stepping over a mark.

What advice would you give to other people

thinking about buying with mates?

I think the most important thing is trust, and that you trust the people you're buying with,

and that you know them very well,

because you're going to be living with them and you're committed to that.

And also, just discuss everything and be open with everything.

If you got a reservation about something, you've got to say

otherwise it will go too far down the line and you can't change it.

And not to rush as well. Don't rush.

If it's a matter of waiting a few more months to save money

to get the property you want... It's exactly what we do.

It took a year and a half, but it was worth it.

So, who's the best flatmate?

-I'm probably the strongest in that department.

-Elected by yourself!

-"Voted for by me!"

-He's the strongest, I am the best housemate.

-OK.

-You're the best looking, he is going to say.

-Yeah, we'll go with that.

THEY ALL LAUGH

It's pretty clear joint ownership is working for these boys.

They seem really clued up and have done things to protect themselves,

like drawing up a deed of trust and having a joint bank account.

But the best advice, unfortunately,

is considering the worst-case scenario.

Drawing up a contract just in case of a change of circumstance

is really imperative, however a good friend they are,

but with more and more of us considering this route,

the banks are starting to cotton on, so you could get a really good deal.

Now back to the bustling city of Leeds, and Sarah and Craig.

They've been together five years

and have set themselves the task of finding a way

of getting onto the property ladder with just a small deposit.

50p? You're joking. Put it in for deposit. Get in.

-Is it?

-No, do you know what it is? It's a party popper.

And a bad winter left self-employed roofer Craig without work.

January, we didn't have no work. That's how much work we had!

And Sarah had to pay her college fees.

Plus, a visit to the bank to talk mortgages left her, well, puzzled.

I think it was just too much to take on.

And Craig wasn't too impressed with what was on offer.

-At 5.9% interest...

-How much?!

-5.9% interest.

Richard wants to see what's available for them

if they go down the traditional house-buying route

of needing a 10% deposit,

so he's brought them to see a house in an area they're keen to live in.

-So what are your first impressions coming through the door?

-Tiny.

-Tiny.

It might need a huge dollop of modernisation,

but this three-bed end-of-terrace is on the market for just 85 grand.

So, you'd probably be looking at a 10% deposit on this

particular property, which would be £8,500

to get into the property.

As a mortgage repayment,

that would work out at roughly £450 per month.

Yeah, it's all right. We pay £400 in rent now...

So, for an extra £50, you could own the property.

Getting a deposit together of 8,500 grand is totally unrealistic

for Sarah and Craig, like thousands of you across the UK.

But don't despair.

There is another option where you could slash the deposit in half.

Stay with us to find out.

With a sizeable deposit of around 30K,

Shree wants to leave the blue rinses of Harrogate behind him

and buy a hot new pad in Leeds but first, he needs to find one.

He's also had a reality check on his overall budget,

and downsized it from 125 to 95 grand.

So, will this get him the swish apartment he's interested in?

So, I've just seen three properties. The first one, I really liked it.

It was on the eighth floor, so it had great views.

The second one was on the third floor,

and it was in this little corridor surrounded by other developments,

so privacy would be a bit of an issue, just other people looking in.

And a third one that I just saw was amazing.

It was bigger than the rest, at the same price point as the rest,

and it's in a nicer development, a newer development.

It just looks awesome,

and it's the one that I'm probably going to go for.

It's on the market for 95,000, so what are you going to offer, Shree?

So, I would be looking to open

with an offer of 75 -

that's 20 grand lower - just to see what they say.

It gives me an indication if they're willing to negotiate, or if that's just far too low.

Before he puts in another crazy low offer,

Richard swings by to try and understand his reasoning.

OK, Shree. Good to see you again. So, have we found anything?

Have we proactively gone out there?

I saw some places in development around Clarence Dock.

The first two were pretty much standard one-beds

that I'd expect to see in Leeds, but the last one was really nice,

as soon as I walked in, I saw myself, and I could picture, like,

"OK, the sofa's going there, TV's going there."

I could just picture how it would be laid out, etc,

and I could see myself living there,

so I'm very interested in putting an offer on that place.

So, what sort of value are we looking at currently, or asking price?

The one I want is 95, or just under 95,

so I'm going to go in

with an offer around 80,500.

-Right, OK.

-And see what they say.

-So, the asking price is 95,000?

-Yeah.

So we're essentially going to ask them to shave off the thick end of 15,000.

I can kind of see the response that I'd want to give you at this particular point.

Now, it might be better... This is just something to think about in terms of how you

want to present yourself to the vendor, and in particular the estate agent,

as a serious buyer, that you consider coming in maybe higher.

My fear would be that if you come in too low, you're going

to get a reaction, you'll get a yes or a no, and anything could happen.

You could get a yes, but I think

it's highly unlikely in this market, to be honest, it's not that down.

But they could also take the opinion

that you're not a very serious proposition.

So, will entrepreneur Shree take Richard's advice

and put in an offer nearer to the 95 grand mark?

Time to find out.

Yeah, in terms of the properties we saw last week...

I've been doing some thinking about figures, etc.

I am looking to put in an offer, and to start...

I'd like to put an offer of 85,000 in.

What...? What do you think?

In my experience, I think it will be a rejection.

Would it be a rejection as in no, definitely, that's far too low,

or can we meet in the middle somewhere?

I think it'll be definitely far too low.

-I would like that offer presented to the seller, if that's OK.

-Yeah.

Just to basically gauge their response.

Like you said, it's probably going to be rejected,

but just to see if it is a downright now, or if there is...

-Basically what they come back with, that's what I'm interested in.

-Would you like me to ring her now?

-If that works for you, that would be perfect.

-Well, I'll see if I can...

That's still £10,000 less than the asking price.

Hi, Magdalena. It's Ethna from Parklane.

Hi.

I've got the viewer with me, that viewed last week,

the viewings we did on Thursday.

He's made an offer of 85,000.

OK.

And what is it that you would...? What is acceptable?

OK. All right. Leave that with me.

She really wants the 95.

I'm going to look at my finances, see what I can do about it,

and then I'll pop in again, give you a call.

'Basically, I just need to decide whether I would pay 95.'

It's 10,000 more than I initially offered.

I knew I would have to come up a bit, but to be honest,

I'm going to have to sleep on it. I can't make that decision on the spot.

It's another big fat no for Shree.

This property-buying isn't so easy after all. What's a boy to do?

Well, I've been told one good way to guarantee bagging a bargain

is buying at auction, but as I found out, you need nerves of steel.

Last year, over 26,000 properties were sold at auction,

with an estimated 10% of those being bought by first-time buyers.

We've all seen those auction TV shows

where places are picked up for peanuts.

How hard can it really be?

To find out, I'm meeting 21-year-old barman Will.

He's got his eye on this three-bed terrace up for auction

in his home town of Newport, Wales.

-A bit scary?

-Yeah, pretty nervous.

Do you want to have a look inside?

-Yeah, I'd love to.

-Cool.

-How many times have you viewed it?

-Just once.

-OK. So this is the second time.

-The second time I've been in, yeah.

-Double-checking. Auction's this afternoon. That's fine!

-That's right. Yeah.

I know that smell.

That is cat. That is man cat.

-Will...

-Yeah.

-There was definitely a boy cat living here.

-A boy cat?

-I know that smell very well.

-I just assumed it was a dead one.

-That's quite interesting because you can see through to the other side.

-Yeah, it's not great.

How much is this house priced at?

The guide price is 30,000.

How much do you think it is going to go for?

Well, my budget to buy at auction is 45,000.

How much is your budget for doing it up?

I would optimistically say less than 20.

-So this is the kitchen.

-Oh, my gosh!

Does that not worry you, that enormous, crusty hole in your house?

-Obviously, yeah, I'm not going to keep it if I do buy the house.

-That would probably be quite bad.

It needs repairing and it is going to be quite a major cost, I think.

You're quite tall and this is quite small house.

I am a bit concerned about the doorways, yeah.

Despite first appearances,

properties like this can be a great opportunity for first-time buyers.

-And the ceiling...

-Oh, my goodness.

-Again, looks a bit...

Someone's actually stuck it together with masking tape.

HE LAUGHS

Are you worried about neighbouring houses being quite derelict and rundown?

Yeah, it does unnerve me that there are, like, prison bars on that house over there a bit.

Yeah, it's not that friendly.

The auction is tonight so I've got a head start to see what else is up for grabs.

So this is the catalogue for today's auction.

I think it's fair to say that a lot of these need

a lot of love and attention. A little bit too much DIY for me.

This one doesn't even have a roof, or walls,

but it does come with parking!

Actually, there's only one property that has a suggested price of 100 grand,

so it's perfect for first-time buyers.

Actually, there's even some quite impressive new builds for about 70 grand.

So, all in all, there are some really fantastic opportunities here.

But if buying at auction was so easy and cheap, surely we'd all be at it.

To get the inside track on the dos and don'ts, I'm going to talk to the auctioneer, Paul Fosh.

£73,000...

Do you think this is a good way for first-time buyers to purchase a property?

I think it can be a great way for first-time buyers.

They do have to have a good deposit to hand.

They have to be in a position to know they have the finance sorted.

That can involve them spending money on surveys before an auction

and they may be wasting money if they are unsuccessful.

What are your big do-not-dos if you are going to buy at auction?

Do not buy property you haven't seen.

Do not buy a property that you have not looked at the legal pack on.

Do not buy property that you don't know the area,

or you haven't done your research on.

Once that hammer's fallen, contracts are legally exchanged.

The seller can't back out, the buyer can't back out.

So you really, really have to do your homework?

Basically, you are buying a house. You might be buying a house in two minutes at a property auction

but it still is a legal transaction.

The auction room's filling up as Will and I get settled in.

-How are you feeling?

-Scared.

And, to make it even more stressful, Will's lot is up first. Yikes!

Lot number one, a lot of interest in this.

Where are you going to start me. Shall we say £30,000? Thank you, 30.

31, thank you. 32? 32, 33? 33.

34? 34. 35? 35.

36? 36. 37. 38? 38.

39. 39 and 40? 40,000.

41? 41? 42, 43.

At £42,000 on my right, then.

It's going... 43. 44?

43,500, if you like? 43,500.

44 now, sir? 44. And a half?

44,500. 45?

45. And a half? 46? 46?

46. And a half? No.

At £46,000 towards the back, on the right-hand side,

for the first time, at 46,500...

46,500, well done. 47? 47.

47,500? One more, are you sure?

At 47 towards the back, for the first time.

Second time. Third and last time at £47,000...

A new bidder. 47,500.

48? 48.

49, then behind. 48, 49?

We're now back to you at 50, sir.

Behind you at 51? Otherwise it's going to be sold at £50,000, then,

for the first time.

Second time.

Third and last time at £50,000.

Yours, sir, thank you, your number, please.

76. Thank you.

So are you a bit disappointed,

-you didn't get the smelly, falling down, crusty house?

-Yeah, slightly.

Would you do this again?

Erm, I don't think so. There is too...

I mean, maybe like I feel like I've enjoyed it at the minute

but at the moment I'm still... my heart's racing...

-And your adrenaline is pumping?

-Exactly, yeah.

52. 53 then back to you.

I was quite surprised how stressful the auction actually was.

I think Will was true.

A huge amount of money changes hands in a matter of minutes.

It's really easy to get sucked up into the excitement.

Even Will went to absolutely his max price.

I think if you have a cool head, and you've done your research,

and you really stick to your price, then, I think, auctions are fantastic.

You can get a great bargain.

There are massive risks.

You need to do your homework really thoroughly.

Otherwise, I think, give them a miss.

Back in Yorkshire, Sarah and Craig know that getting a 10% deposit together

to buy a property the traditional way is well out of their reach

but there is another option.

Richard has taken them to a new build house

which might be a more affordable solution for them.

-What are your initial thoughts?

-Nice.

-It's nice.

Surprising for a new build, to say I'm, like, not keen on them.

We have it on good authority that you could get this property for £121,000.

Now, that is quite a chunk of money.

New build houses like this can be bought with just a 5% deposit through a Government scheme.

It's still, just for us 5% of that, you know,

that's great 5%. It's still getting six grand.

6,000 is a hell of a lot but Richard clearly thinks it's achievable,

especially with some of the Government schemes available

to first-time buyers like Sarah and Craig,

one of which is called Help To Buy Equity Loan.

Right, guys, so the Help To Buy scheme works like this.

Let's imagine that this 100 quid we've got here represents

£100,000, which is about what we would be looking for for a mortgage.

First of all, the Government would give us 20%.

Now, interesting, this 20% would be

interest-free for the first five years, which is incredibly cheap.

The second thing we are going need to find, of course, is our deposit.

Unlike, the more traditional mortgage route,

we only need to find, in this case, 5%.

That cuts in half what we originally would need.

Ten grand now becomes five grand.

The remaining 75,000 is what we'd need to find

through the traditional mortgage route.

You could look at a variety of different lenders,

through banks and building societies and borrow that on a traditional mortgage.

When we combine all of these three things together,

because of this being interest-free for the first five years,

the overall cost of the mortgage is considerably cheaper

and our monthly repayments are considerably cheaper,

because we're only paying interest on this proportion of the loan.

And, of course, because we only need 5% that means the deposit is

twice as easy for us to get than it is down the more traditional route.

In your case, we were looking for £10,000,

now we only need £5,000.

Another Government scheme aimed at first-time buyers like Sarah and Craig

is called Shared Ownership

and I asked Tina to investigate what it's all about.

Back in the summer of 2012, Britain was buzzing with worldwide attention.

A whole host of athletes became household names.

But, with the biggest show on earth now over, some of the 3,000 properties in the Olympic village

are being turned into affordable housing.

Athlete JJ Jegede just missed out the Games,

but he could be about to live here anyway.

He's a local lad from East London

but cannot afford to buy on the open market.

-# I want to make you wanna...

-Jump, jump...

-#

JJ is one of the world's best long jumpers and was

introduced to the shared ownership housing idea by his sister.

She said that she'd got reduced mortgage

and she paid a rent on the other part she didn't own.

-So you buy a bit and then you rent a bit?

-Yeah. It was like half/half.

At least this is a way of getting onto the ladder.

To explain how shared ownership schemes work,

we are going to use this traditional podium where the bronze,

silver and gold spots represent a third.

So, JJ just to make things clear,

let's imagine all of this is your house. Which bit do you own?

I'd own a deposit and I'd get a mortgage on a third of the property

and I'm paying rent on the other two thirds.

So the rent to the housing association

-on two thirds of the house. You own this bit?

-Yes, that's right.

So JJ what happens if, you know, in the future you earn a bit more money?

Hopefully, I can buy some more.

So now I'd have a mortgage of two thirds

and I'd pay rent on the other third to the housing association.

-For that bit.

-Yeah.

-And the dream?

The dream, hopefully, is to own it all.

So, I don't pay any rent to the housing association.

What happens, if some reason, you want to sell it before then?

If I want to sell it, hopefully it's gone up in price

and once it's sold I'd get two thirds of the profit

and the housing association would get the other third of the profit.

This is the flat he's hoping to bag.

-Here we are.

-Wow! This is lovely.

-It's so big, isn't it?

-It's really nice.

-It's such a lovely space.

It's just all brand, spanking new.

It's a great way to come into a new house.

You can, literally, just move straight in.

Yes, bring your bits and set up your table, set up your sofa

-and you're away.

-Modern design, isn't it?

-Yeah.

-It's all very sleek.

-It's very compact.

-It's beautiful

-It's very stylish.

It's even got a balcony, look at the balcony.

You can see the Olympic Stadium right over there.

I'll be competing in there quite a bit so, for me,

I'll be able to walk across and have a little jump.

-A perfect location for you.

-The best location.

-Are there any downsides?

I think that when I have a family,

-maybe I'll have to move to a bigger place.

-Mm-hm.

I know that if I wanted to move another place

I couldn't sublet this place I'd have to sell it.

-I could only sublet it if I had owed 100% of the property.

-OK.

So on the shared ownership unless you own it outright,

which you won't at the beginning, you can't sublet?

-Yeah, I won't be able to let it to somebody else until I own the full property.

-Right.

If you earn less than 60K a year, or a bit more in London,

and can't buy a home outright in the area you live, you could be eligible.

Over 170,000 shared ownership properties have been sold to date

in the UK, so it could be a great way to get that first step onto the property ladder.

Shared ownership is a government backed scheme, so it's a safe bet for your money

and has helped loads of aspiring first-time buyers.

There are a few drawbacks, though, like restrictions on who you can sell to

and, like any property, location is key.

If you don't have the bank of mum and dad behind you,

or a huge deposit sitting in your bank account,

this could be the perfect venture.

Richard, when it comes to buying a house,

there are quite few intimidating, scary terms such as

shared ownership, equity loan and I know there's a whole load more.

There are. In a nutshell, there are four different ways you can get a loan from the Government.

All are aimed at first-time buyers and they only require a 5% deposit,

which is so much easier to achieve.

Our survey showed that it's getting that deposit together that is

-the biggest obstacle for getting on the property ladder.

-Exactly.

And so far we've looked at equity loan and shared ownership

but we also have new buy

and that does exactly what it says on the tin.

The property needs to be new and it needs to be through a developer who is registered with the scheme.

Once again, you only need a 5% deposit.

Now all of the schemes we've looked at so far are aimed at new build,

but a new scheme, available in January 2014,

called Help To Buy Mortgage Guarantee will be aimed at older properties.

But, once again, you only require a 5% deposit.

That's my favourite option because, actually, the great thing about those old buildings

is that they have potential.

So you put in a new kitchen, you do some work to the house

-and, actually, they're a really good investment.

-They are.

I should also point out there are some good private schemes out there

so it's well worth getting online and doing some research for yourself.

But, you obviously have to check the Government website

-for terms and conditions.

-Always a good idea.

So now we are back to Leeds where we are following some wannabe home owners

who are attempting to get their foot on the seemingly elusive property ladder.

Ailsa inherited £45,000 from her grandma on the condition

she uses it to buy her first home.

So, with her parents loaning her around 60 grand,

Ailsa has put an offer in on a three-bed house in Pudsey.

With the support of Mum and Dad, she's put in an offer just over £5,000

less than the asking price and is waiting to hear whether it's been accepted.

Hello...

They've accepted it, Mum.

Congratulations, Ailsa, time to speak to best mate, Lauren,

to let her know they're moving.

-Hurray.

-Oh, my God.

-House.

-You're a homeowner.

-I know. I'm a grown-up.

-We will have a drink tonight to celebrate.

-Yeah, celebrate.

Celebrate. Like grown-ups.

Now the hard work begins and Ailsa's keen to sort out all

the boring stuff out herself, like surveys and solicitors.

This could get interesting.

I thought that the surveyor had been in

because I received some paperwork from someone.

I then found out that wasn't the surveyor, that was the solicitor who was doing a search on the area,

so we haven't actually got a surveyor...

yet.

So this is the difficult bit.

We're communicating with everyone and I keep thinking that I've got something but I don't.

Searches on a property identify any potential problems,

or issues in the area. Some of which you'd never thought possible.

I didn't know that you had a search on

that you're not at risk of radioactivity.

But, I'm not. That's good.

I don't really know what a survey is!

Mum, was like, "No, a survey is where they go into the house

"and check like the foundations and the walls

"to make sure it's structurally safe." I was like, oh.

"Please note that much of the information given is highly technical

"and that I am not able to interpret it for you."

Which means, THEY don't understand it either

so I've got no hope of understanding it.

But we'll book one anyway.

Hiya, my name's Ailsa Westwood. I was calling to see if anyone could recommend a surveyor at all.

Yeah, what sort of survey are you wanting?

I think it's an industrial one, I'm not 100% sure.

-Is it a building?

-Yeah.

-Right, OK, that's fine.

-Yeah.

I'll ask them to give you a call and give you a quote of how much it's going to be. OK?

Thanks very much, bye.

I'll give my mum a call and tell her what's happening.

Hello...

Hello. What about the survey?

I spoke to someone at the estate agents

and they have given my number to a surveyor.

It's not a structural survey you need doing, it's a buyer's survey.

I'm pretty sure I said "industrial".

You're buying a house, not an industrial unit.

Well, what's an upward chain?

SHE LAUGHS

-OK?

-Bye.

And it can be very confusing understanding all the jargon.

When we were looking at houses,

it says "No upward chain".

I was like, "Oh, we want one with no upward chain."

Mum was like, "Yeah, we do." I was like, "Because that'll mean it's in a safe area."

She went, "Why do you think that?"

I was like, "Because there's no chain on the door.

"Does that not mean that?" She was like, "Oh, God. No."

I was like, "Oh, I thought it meant there was no chain on the door

"so it would be nice area to live in."

SHE LAUGHS

No upper chain actually means the house seller doesn't need

the money from the sale of the property to finance another

purchase, which is ideal as being in a chain can be problematic

when someone in it pulls out.

Finally, Ailsa gets her head around it all and books a buyer's survey.

The survey typically costs upwards of £250

and checks the general condition of the property.

This includes looking at the drains and signs of damp.

And, after all that hard work, it's time to have some fun.

Most of the furniture in her future home is up for grabs.

So Ailsa wants to snap it up.

We definitely wanted the sofas.

There is nothing of any sentimental value in this house that I'm not prepared to sell.

-I think you want anything that Tina's flogging, really, don't you?

-Yeah.

Ailsa's mum, Janet, is there to make sure the girls drive a hard bargain.

Shall we start at two grand?

You can start at two grand.

THEY LAUGH

-I'd go 2,500.

-Shall we go to 2,250 and call it a deal?

-Yeah.

There we are, a deal.

Yay, thank you.

So for £2,250 Ailsa has got herself practically all

the furniture in the house, except the clock.

Job done. Well done, Mum.

So, Richard, it's nearly the end of the programme.

What are your absolute top golden tips for getting onto the property ladder?

The first one, be warned, it's boring but it's essential.

You've got to be serious about saving.

We seen lots of ways to save money from living with a granny,

to moving back home,

which are the big winners compared to things such as skipping

the odd pint down the pub and making your own sarnies for lunch.

Secondly, look for a property that you are going to be prepared

to live in for five years, or more.

You don't want to be shelling out another lump sum on stamp duty or legal fees

when you decide to move from a one-bed to a two.

So if you don't quite have enough to get the property that you want?

-Wait.

-Wait.

Bide your time, do it right.

Now we're off to Leeds for the final time to see how best friends

Ailsa and Lauren, and the so huggable Sarah and Craig,

and the business brain that is Shree, are getting along.

I've got my fingers crossed.

Self-proclaimed entrepreneur, Shree, has been looking

for a perfectly-priced bachelor pad

in the heart of happening Leeds for months.

But, is he trying to drive too hard a bargain?

I'm being a bit cheeky, I'm going quite a bit below the guide price

but I'm hoping, since it's meant to be a buyers' market,

so hopefully the developer will accept it.

Shree has been putting in offers up to 20,000 below the asking price.

So has he learnt anything?

I'm prepared to make an offer now.

I'd like to offer £85,000.

-Right, OK. Is that a serious offer?

-Yes.

-Yeah, OK, fine.

It's on the market for 90 grand and is identical to the previous flat he'd put an offer on.

So will this seller accept 5,000 less than the asking price?

I didn't expect the estate agent's reaction

to be as gobsmacked, really.

So, based on what she said about the seller,

I think I stand a good chance. I stand good chance.

There might be some negotiations involved, but we'll see. We'll see what happens.

Shree's already got a mortgage in principle agreed

and a couple of days after putting in the offer,

he calls the estate agent to see if there is any news.

Hi, Elizabeth, it's Shree. How are you?

OK. Fantastic!

That is fantastic news.

Great, thanks a lot, Elizabeth.

All right, you too. Speak to you soon.

All right, Cheers, bye.

Well, er, from the smile on my face I think you'll know they took my 85 grand offer.

Shree's finally sealed the deal.

I feel great. This is what I've wanted.

And especially because I put in the same offer for a very similar flat the week before

and I got plain out rejected, there was no negotiation.

To have someone say, "Yeah, fine, that's a reasonable offer,"

makes me think I was on the right track with the other flat, as well.

So, it's fantastic.

Should I have gone down?

Would I have got away with 82, maybe 80 grand?

Now I need to go home and Google what the next steps are

and then just tell my parents the good news and get the ball rolling.

It will be at least a couple of months before Shree can move in,

but he's picked up a posh pad for 85K, which was his plan all along.

It's been a tough old year for Craig and Sarah

and, although it might take them a year or two to save for that essential deposit,

they are now armed with all the important info.

We've come a long way.

We know, not everything, of course, but we know a lot more now than we did back then.

-We know we needed a deposit, didn't we, of, like, 10% or five somewhere.

-Yeah.

And we still do.

HE LAUGHS

But, obviously, he's told us about all them different schemes there is.

-That's obviously given us an idea...

-Yeah.

..on what we can save and how much we might need and stuff.

And it's going to help for the future,

so, when we can afford it. In that case, job done.

Hopefully they'll be able to pick up the keys to their first home in the very near future.

It's finally moving day for Ailsa and her best mate, Lauren.

They've done some of the packing but, thankfully, Mum and Dad are on hand, again to help out.

# I belong with you You belong with me

# You're my sweetheart... #

It's been a relatively smooth ride to home ownership for Ailsa

but what she wasn't expecting was a very teary former resident.

-SHE WHISPERS:

-She's crying.

I know it's not my fault but I just feel bad.

I know, yeah. I feel I've just come in like...

It's not... I feel bad.

-It's OK.

-I know.

SHE MOUTHS

I feel like I've just kicked a perfectly nice lady out of her house.

-I feel quite bad.

-She's left everything.

-Upstairs she's bought us new mattress for my room.

-All the towels.

All the towels. She's bought new bedding.

I very much feel like I've landed on my feet.

The first house she went into, we're going to chuck everything in for you.

Fair enough, it's taken a while, but...

Ailsa's now a grown-up.

It's taken nearly four months but she's got there.

Well done, Ailsa.

Whee!

Thank you so much to our lovely Leeds residents.

It's been a bit of an emotional roller coaster for some.

Huge congratulations, again.

So the ultimate question is, should you buy, or not?

It could mean sacrificing some stuff to get that all-important deposit together

so you might decide it's not the right time for you.

But, if you do decide to go for it, remember it is your home as well

as a potential investment, so make sure it's the right place for you.

More information on making that choice,

and tips from all our programmes, are on our website.

Good luck!

# So we're bleeding out

# I belong to you You belong to me

# You're my sweetheart

# I belong to you You belong to me

# You're my sweetheart!

# Hey! #

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