With mortgage rates at their highest for many years, property prices rising, rent payments increasing and the cost of living crisis still having an impact on spending, it's little wonder that people are struggling to get onto the first rung of the property ladder. Many people are now looking for alternative ways to achieve their home owning dream but what other options are there? This post will take a look at the costs, the challenges and the positives of one of the popular trends for alternative home owning: living on a houseboat.
What Kind of Boat Can I Live On?
There are two principal types of houseboats that are available in the UK:
Narrow boats
These boats are usually around 6 ft 10 in wide and up to 72 ft long and are commonly constructed from steel. They are the most popular houseboat found on the canals and rivers in the UK but they do have limited living space. A second hand narrow boat would cost from £30,000 upwards but may need investment and renovation to make it into a comfortable living space.
Dutch Barges
Dutch barges are former commercial boats that can be 20 ft wide and up to 120 ft in length. As they are only on one level, this makes the conversion process simpler, and they have a flat bottom, making them more stable than a narrow boat. Dutch barges can only be moored on rivers, not canals and they are priced from around £50,000.
How to Buy a Houseboat
Most prospective houseboat owners buy their boats with cash, rather than getting a mortgage. This is because the large majority of lenders will not provide a mortgage as you cannot register a houseboat with the Land Registry. There are some specialist 'marine mortgages' available, but they usually require at least a 25% deposit and can have higher interest rates and a short repayment term. Compared to the current house prices in the UK, however, buying a boat for around £50,000 is much cheaper than anything you can currently find on land!
Can a Boat be a Full Time Home?
Yes, you can live on a narrow boat or Dutch barge all the time but you will need to choose between either a residential mooring or be continuously cruising. You also need the mooring in place before you buy a boat.
Residential Mooring
If you need to be in one place due to work commitments, school or family, you will need to apply for a residential mooring. This is more like a conventional home as you can leave your houseboat as you would a house or flat and come back to it at the end of your working day. The problem with this is the cost. Residential moorings can be expensive (around £2000 to £18,000 a year), and it can be hard to find the right place to make a permanent home, especially in busy cities.
Continuous Cruising
If you are happy to keep on the move, you can license your boat with the Canal & River Trust (https://canalrivertrust.org.uk/boating/licence-your-boat), which usually costs somewhere between £500 and £1000 a year. You must move your boat every 14 days to a different mooring and cover at least 20 miles over a year. During the winter, however, the Canal & River Trust does offer some permanent moorings, as canal closures and bad weather can make it difficult to keep moving on every couple of weeks.
How Can I Find the Right Mooring?
The first place to check is the Canal & River Trust website as they lease a selection of moorings every year. You could also enquire at marinas, ask around for privately owned moorings or check at the Environment Agency. The Canal & River Trust moorings can be expensive, depending on the size of your boat, where the mooring is and what facilities you require. The best mooring facilities include sewerage, water, fuel and power. Before deciding on a mooring, explore the area, and walk the towpath and see if it feels right for you. Also, ask other boat owners for their opinion on the area. They may even be able to let you know if any moorings are available.
Is it Cheaper to Live on a Houseboat?
Compared to the current house prices in the UK, a boat appears to be a lot cheaper than a house. There are also some other financial perks. You do not need to pay stamp duty when buying a houseboat, and boats come under the lowest council tax band. However, there are other costs to factor in.
Boat Survey - As with buying a house, you will need to pay for a survey to assess the condition of a second hand boat before you buy. This can cost between £300 and £400, and you will also need to factor in the costs of any repairs.
Boat Safety Certificate (BSS) - This is a form of insurance that needs to be in place on most of the waterways in the UK. The certificate costs around £150.
Boat License - The cost of this can vary depending on the size of your boat and you can only get a license if you already have a BSS and insurance. This can cost anywhere between £500 to £1000 a year and if you are continuously cruising, you may need different licenses for different waterways.
Insurance - You will need to get insurance so you can secure your boat license. It is also advisable to get contents insurance too, just as you would in a land based home, and the costs of this could come out at around £200 a year.
The Pros and Cons of Houseboat Living
Living on a houseboat is great if you appreciate the freedom to explore in the fresh air with beautiful views at a fraction of the cost of living in a land based home. However, you do need to consider that you will have limited storage space, ongoing maintenance costs and a cramped living environment that might not be suitable for larger families or people who need their own space. Before taking the plunge into houseboat life, it is definitely worth taking a week's boating holiday in both summer and winter to see if the lifestyle suits you.
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