I know how you feel OP …
I sold my house in 04 and made a tidy wedge that saw me through a 12 month career break and another 18 months of experimenting with what to do next.
Have been renting a beautiful 400+ yr old cottage with my SO (and dogs, cat and now a 3 wk old son) since 06 – plenty of character, spacious garden, barn, loads of parking, 150m from the road, surrounded by woods, fields and a river – and devoid of any landlady intervention.
There’s no way we could afford this (or any decent 3 bed) on a mortgage (North Downs, Surrey), and are not prepared to buy something affordable (which will still be grossly overpriced) for the sake of it.
On the plus side we have a great quality of life – and from a selfish perspective, I’m only minutes from the trails.
Saving for a deposit is tough, especially now it looks like 25% is the threshold. Having said that, I have kept my endowments going, all of which mature in 10-11yrs – so that will at least pay off a nice chunk of whatever we own at that time.
Right now, quality of life is more important to us, with the expectancy that prices will drop and lenders will become more amenable.