The 10 most affordable places to buy in London

2023 may be the year that we have started to see the end of the pandemic house price boom. However, with mortgage rates still sitting at between 4-5% on average for a 2 or 5 year fixed term in the wake of the Bank of England’s most recent base rate increase and the average asking price for first-time-buyer properties hitting a record high of £224,963 in April 2023, buying a home can seem like an impossible dream.

Nowhere is this more true than in the pricey capital, with London house prices some of the most expensive of anywhere in the UK. Indeed, the average house price across the city is currently £723,707 with pricey boroughs like Central London and West London costing a budget busting £1,588,472 and £1,324,849, respectively.

But if you are keen to get on the London property ladder and your budget runs more to lemonade than champagne, where should you be looking to buy? According to property experts Rightmove, the following areas are the most affordable locations In the capital right now. 

Perhaps unsurprisingly, 7 of the 10 most affordable areas are located in either East or South-East London, which are London’s most reasonably priced regions, with an average house price of £531,493 and £584,174, respectively. 

So, what do these areas offer prospective homebuyers?

Barking

Having made its name as a largely industrial area thanks to its riverside location, Barking in the East London Borough of Barking and Dagenham has been the focus of much regeneration of late. This includes the 440-acre Barking Riverside development which is home to a new Overground station, also called Barking Riverside, and will house over 10,000 new homes, 7 new schools and plenty of green open space and sports facilities once complete.  

The town is also served by the District Line, the Hammersmith & City Line and the C2C plus various bus services with plenty of bars, restaurants, retail and leisure facilities on offer to entice a varied range of homebuyers. Barking’s place at the top of the list of the most affordable areas of London is also likely to be of interest! 

Dagenham

Immortalized in the 2010 film Made in Dagenham – which was based on the true story of the fight by local female sewing machinists to receive equal pay to their male counterparts – Dagenham has a largely industrial heritage, much like its neighbour to the west, Barking. Like Barking, Dagenham is also experiencing regeneration of former industrial sites and has  plenty of open green space in the form of Beam Parklands Country Park, Eastbrookend Country Park and Parsloes Park to name but a few. Zone 5 Dagenham is also home to several underground and rail stations offering links on the District Line, Thameslink and C2C, with nearby Chadwell Heath offering a handy stop on the new Elizabeth Line.

Although one of the more affordable options in London, property prices remain on the rise in Dagenham. According to Yopa, sold prices are 5% up on last year and a whopping 14% up on 2020.

Thamesmead

As the name suggests, Thamesmead in South-East London is adjacent to the Thames and the area’s many lakes and canals offer some lovely spots for walkers and cyclists and link to the Green Chain Walk and the Thames Path. Largely residential, Thamesmead spans the border between the Boroughs of Greenwich and Bexley and is home to plenty of indoor and outdoor leisure facilities and sports clubs, a number of popular primary schools, a handy retail park and a range of supermarkets and local eateries. 

Thanks to its geography, it is tricky to introduce new infrastructure to the area and as a result there are currently no underground or railway stations in Thamesmead itself. However, there are various bus services which include links to nearby stations at Abbey Wood, Belvedere, Plumstead and Woolwich Arsenal for train services into Central London, the Thameslink or the Elizabeth line towards Paddington. 

South Norwood 

South Norwood is located in the South-East Borough of Croydon. The 125-acre South Norwood Lake and country park, Selhurst Park Stadium – home to Premier League football team Crystal Palace – and the Croydon Sports Arena are just a few of the many leisure facilities on offer locally alongside a strong arts scene via the likes of Stanley Arts. With both primary and secondary school options also available and easy transport links into Central London via the Overland, Southern and Thameslink services from Zone 4 Norwood Junction station, it isn’t hard to see why South Norwood is popular with homebuyers. 

Property prices in the area remain consistent and are currently 5% higher than the 2020 peak of £377,771.

Chadwell Heath 

Spanning both the Boroughs of Barking and Dagenham and Redbridge, Chadwell Heath in East London has a good selection of schools, play areas and leisure facilities for families and plenty of independent retailers and amenities to tempt buyers of all ages. Commuters can also be at Liverpool Street Station in 25 minutes thanks to the Elizabeth Line from Zone 5 Chadwell Heath station and there are numerous bus services available too. 

Whilst still a more affordable option, property prices in Chadwell Heath have increased by 7% in the last 12 months and 9% since 2020. 

Harold Wood

Named after King Harold II, who was famously defeated by William the Conqueror at the battle of Hastings in 1066, residential Harold Wood is located in the East London Borough of Havering and offers a direct connection into London Liverpool Street or London Paddington via the Elizabeth Line or the Great Eastern Main Line towards Chelmsford, Colchester and other areas in the East of England. 

There are a number of highly regarded primary and secondary schools locally, alongside all the essential amenities and easy access to nearby Romford and Hornchurch for cinemas, theatres, restaurants, and other amenities. 

Erith

Formerly part of nearby Kent, Erith now falls under the London Borough of Bexley. A popular riverside location which is home to the longest pier in London, Erith sits in Zone 6 on the Southeastern train line to Dartford in Kent or London Cannon Street and London Charing Cross in Central London. There are two train stations available: Erith in the centre of town and Slade Green to the south-east. There are also numerous local bus services. 

In the last year, sold prices were up 12% in Erith, although house prices are still much more affordable than the London average.

Feltham

Previously part of Middlesex, Feltham was incorporated into the Borough of Hounslow in West London in the 1960s. Feltham train station is on the South Western Railway Line and provides a 35-minute service direct to London Waterloo. The Elizabeth and Piccadilly Lines are available from Heathrow Airport Terminal 4 to the northeast of Feltham and the Piccadilly Line also runs from nearby Hatton Cross station. The town itself has plenty of amenities to suit all tastes from shopping to sports facilities, parks and gardens to museums and a cinema, with a good selection of schools to boot. 

House prices are still slightly up on this time last year, and an impressive 17% higher than they were in 2020.

Northholt  

A settlement at Northolt dates back to Anglo Saxon times and the area was farmland until the Victorian era when the Grand Union Canal and the Railway arrived. Today, suburban Northolt has all the essential amenities plus a large number of schools and child friendly activities. Despite the presence of the A40 and the A312, Northolt is also full of lots of open, green space such as Rectory Park, Lime Tree Park and Islip Manor Meadows. 

Located in Zone 5, commuters can travel from Northolt station on the Central Line and be at Oxford Circus in around 35 minutes. House prices have also remained on the rise with a 7% increase since last year and a 13% increase since 2020. 

Edmonton 

Known for its good schools, retail and leisure facilities and exciting eateries, Edmonton in North London is popular with families and young professionals alike. Located just south of Enfield and north of Walthamstow, Central London is an easy commute from Zone 4 Edmonton, which is home to London Overland stations at Edmonton Green and Silver Town. There are also a number of Great Anglia train services available and various local bus routes on offer as well. 

The most expensive area in our top ten, sold prices in Edmonton over the last year have only risen by 2%, although they remain 12% up on the 2019 peak of £413,414.

Before making any property purchase, especially in London’s competitive market, it’s essential to conduct residential property assessments. These assessments provide a detailed evaluation of the property’s condition, potential issues, and fair market value. By obtaining a professional assessment, homebuyers can make informed decisions, ensuring they invest in a property that aligns with their budget and expectations Focus 360 Energy.