Houseboats are stylish, compact residences with show-stopping waterside views. Great for a holiday but what are the pros and cons of life afloat?

What kind of boat will suit me?
The most spacious are the broad-bodied Dutch barges, though these are too wide to access some of England's inland waterways. If you want complete freedom of movement, a narrowboat is your best bet.

Any other options?
Converted Thames lighters – river workhorses that are longer than narrowboats and wider than barges – are popular. Purpose-built static houseboats are practical, and some come with land, but they can lack charm.

New or old?
You can have your dream boat built to order. Companies such as Boats and Barges (www.boatsandbarges.co.uk) work with interior designers to make bespoke floating homes from around £50,000 for a one-bed. A second-hand boat from a marina or broker may be cheaper, starting at under £50,000, but maintenance will cost more. (See the latest postings at www.houseboats.apolloduck.co.uk and www.houseboatcentre.co.uk)

What will I pay?
You can find houseboats from under £50,000 to over £500,000. Be wary of bargains – these may be boats in bad condition and without a mooring, both of which are expensive to sort out.

What happens next?
Put down your 10 per cent deposit, “subject to survey”, and have the boat checked over by a specialist (set aside £400-£2,000; try a member of the Yacht Brokers and Surveyors Association, www.ybdsa.co.uk)

How will I finance a purchase?
It is becoming difficult to get a mortgage on a boat, and most buyers remortgage a property or raise a bank or building society loan.

Do I need a licence?
Yes. Like a road tax disc, before you obtain a licence you must show your boat meets safety standards (see www.boatsafetyscheme.com), and has third party insurance (usually cheaper than car insurance; www.justboatsinsurance.co.uk).

Tell me about moorings
They are in short supply. They are priced according to boat length and demand and can cost from a few hundred to several thousand pounds per year. The best moorings have water, electricity, gas, sewage and even broadband. There are waiting lists in some areas of London, the south of England and the south Midlands. (Visit a list of moorings available at www.waterscape.com)

And running costs?
Factor in your utility bills, mooring fees, insurance, Boat Safety Certificate, licence, fuel, repairs and maintenance, plus the regular visits to dry dock for a scrub down and repaint. Depending on your local council and mooring, you may also be liable for council tax.

Can I do this part time?
Timeshare options are available both in the UK and in sunnier climes such as Florida.

WORDS KATRINA BURROUGHS