Where is the Most Affordable Place to Buy a Property in London?
London might be notorious for being the most expensive area to live in the UK and one of the most expensive cities in the world, but the good news is that with a little bit of searching, you can find some areas of the capital that are more affordable than most to buy or rent a property. While you might struggle to find houses or flats that are priced as low as other areas in the UK, there are plenty of areas where those who are working or studying in London can find somewhere to live that is within their budget. Whether you are looking to buy or rent a property in London, the first step is to determine how much you can afford to pay and narrow down your searches to areas where this is possible. You may also be able to find cheaper options by looking into Shared Ownership options if buying, or if renting, consider a house of multiple occupation rather than a complete property if this is possible. We’ll take a look at the areas of London where you are most likely to find affordable housing to buy or rent.
Where are the Most Affordable Areas in London to Buy?
If you’re looking to purchase a house or flat in the capital, you will be aware that the average property price here is higher compared to the rest of the UK. It is best to avoid the more expensive boroughs in London such as Kensington and Chelsea, Mayfair, or Westminster, where you can find some of the capital’s most expensive homes. The areas of London with the lowest house prices are:
Barking and Dagenham: This area is the cheapest place to buy a home in London with an average house price of £300,000. There are excellent transport links into Central London for those who work or study in the city centre.
Bexley: With an average house price of almost £343,000, Bexley comes in as the second-cheapest borough to buy a home in London.
Croydon: With low prices, a range of constantly improving amenities and very easy access to Central London via public transport, it’s no surprise that Croydon is growing in popularity. And with an average house price of just under £360,000, it’s also one of the most affordable areas of London for those who are looking to buy.
Havering: With an average house price of around £360,000, Havering is home to a lot of protected Greenbelt land. You can easily get into Central London on the District Line, which runs west to Upminster.
Sutton: With average house prices of just under £370,000, Sutton has a reputation for some of the best schools in the capital, making it a very popular option for growing families who are looking to move away from Central London but close enough to get into the city easily.
Newham: With an average house price of over £370,500, Newham might have increased in price recently for those looking to buy but is still one of the more affordable areas in the city. There are various transport links provided by the Jubilee and Central tube lines along with the DLR, making getting into Central London easy. You can find a wide variety of affordable, modern new-build properties in popular areas like Custom House and Stratford.
Greenwich: Greenwich is an area filled with various popular attractions including the Royal Park, Naval College, and Observatory. With an average house price of just over £370,000, it’s a very attractive area for buyers.
Can You Find Affordable Housing Central London?
While the best way to find affordable housing in the capital is to move away from the centre, it is possible to find cheaper house prices in the city centre thanks to funding provided by London Mayor Sadiq Khan to build three different types of affordable homes in the capital. These include:
London affordable rent: These homes are designed for low-income households in London and cannot cost more than 80% of local market rents, including service charges.
London living rent: These homes are designed for middle-income households in London who are currently renting a property but want to save up to purchase a property. The rent for this type of property averages at £1,000 per month for a two-bedroom home and is based on one-third of average earnings in each local authority.
Shared ownership: This scheme is increasingly popular throughout Central London, allowing you to buy a share of a property and pay rent on the rest. It is designed to make it easier for people on lower incomes with smaller property deposits to get onto the property ladder.
Where Can You Find Affordable Housing in Central London?
There are various places across Central London where there are different types of affordable homes being built or where there are plans for affordable home development. This includes Varcoe Road, which is located in Southwark and just a short distance from London Waterloo. The development offers almost sixty small affordable flats with one bedroom. Residents have access to a range of amenities including cycle storage, a co-working space, sunroof, and two communal roof terraces with landscaping.
The Most Affordable Places to Buy in London for First-Time Buyers:
If you are a first-time buyer looking to get your foot on the London property ladder, there are various areas to consider that are more suitable than others. Along with some areas of London that tend to have cheaper property prices overall compared to the others, there are some areas of London where shared ownership properties are more likely to be available than others. Some of the most popular areas in London for first-time buyers include:
Lewisham: Including popular residential areas of Forest Hill, Brockwell, and Sydenham, Lewisham covers a large area of east London and includes fashionable and historic areas such as Deptford and Blackheath. It offers a range of excellent transport links to the city centre and provides great value homes in an attractive area.
Enfield: Connected to the tube network by a range of different stations on the Piccadilly line, Enfield is the most northerly borough in London and a popular choice with first-time buyers, with property prices averaging around £397,000.
Hounslow: This area offers a wide variety of different types of properties with something for every type of first-time buyer available. It is home to a range of popular residential areas that have enjoyed a lot of development recently, such as Brentford, which is an increasingly popular choice with first-time buyers in the capital. Isleworth is a top choice for growing families who need a larger and more affordable place to live in London with excellent links for commuting.
Affordable Rent North London: Where Can You Find Affordable Flats to Rent in London?
If you are a renter looking for the cheapest places to live in the capital, you’ll be glad to hear that there are some options available for affordable rent. The average rent for London as a whole is around double compared to the average rent for the rest of England, but it is possible to find an area that is suitable for your budget.
Lewisham: While the overall asking rent here is higher than most of the cheaper areas in London, it is the ideal option for those looking to share a house or flat while renting since it offers larger homes with an average rent of around £2,400 per month, which works out at around £600 per person for a four-bedroom home with all the rooms filled.
Waltham Forest: With an average rent of just over £1,000 for a one-bedroom flat, Waltham Forest is one of the best areas for commuters looking for cheaper rent, with easy access into the centre via the London Underground and a range of bus services. You can find the more affordable apartments in Walthamstow, or larger Victorian homes that are perfect for sharing in Epping Forest. You can expect to pay around £550 per person for a home shared between four people in this area.
Redbridge: With excellent schools and plenty of parks and green spaces, Redbridge is an ideal area for families who are looking for affordable rent in the capital, although commuting to the city centre is not as easy as from some other areas. The average rental price for a three-bedroom home in Redbridge is just over £1600 per month.
Bromley: Bromley is one of the cheapest areas to rent in the capital if you are sharing with other people, and when you’re ready to get on the property ladder it is also one of the best areas for Shared Ownership. The average rent per-person is £791 per month when sharing a three-bedroom home, or £520 per month when sharing between four people.
While the capital city of the UK is notorious for having some of the highest prices for buying or renting a home in the country, there are several areas where you can find more affordable options than others. Talk to GLP to find out more.