A romantic alternative to buying a house?

With first-time buyers increasingly priced out of the property market, houseboats seem a cheap and romantic alternative. But beware hidden expenses.

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"More than 60 million people are now packed onto the decks of SS Great Britain," says Richard Morrison in The Times. "And according to the Express the entire population of Romania is about to move here as well." Where will Britain go to find some peace and quiet, "far from the madding crowd"?

The answer for many already priced out of the housing market could be houseboats. Relatively cheap compared to their land-dwelling cousins, a second-hand narrow boat costs around £20,000, says Sharlene Goff in the FT. "It is not surprising this alternative lifestyle has caught the eye of first-time buyers." That's the marketing pitch, anyway.

Houseboats aren't as cheap or romantic as some would have us believe. According to a spokesperson from estate agents Riverhomes, they are often more expensive to buy than bricks and mortar. A second-hand narrow boat may be £20,000, but the real expense comes with finding moorings, a rare commodity in London, where you're likely to pay £8,000 plus per year for the privilege of docking your boat.

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There are also big problems associated with locating finance for your place on the water. Not only do you have to find a specialist in marine finance, but they're likely only to lend you up to 80% of the boat's price, if that. They'll also lend at a rate closer to 8% or 9%, rather than the lower one you would secure for a mortgage on a house. And what home-owner has to sit around the house waiting for the tide to come in so that he can finally flush the toilet?

It's a none too practical option and by no means cheap. But if you're still interested, Riverhomes has a two-storey, three bedroom houseboat in Chelsea going for £470,000 with a 21-year mooring.

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