In England, London saw the lowest annual price growth of 6.3% between June 2020 and 2021, according to the Gov’s press release on August 18th 2021*
Analysis of London’s property prices shows the most affordable postcodes across London. Thamesmead in South East London is crowned the most affordable area to buy a property, with average property prices in the area coming in at just over £275,000 – almost £50,000 less than the next most affordable area of Lower Edmonton.
Key findings include:
- Southeast London is home to five of the top ten most affordable postcodes in London.
- First-time buyers could be able to buy a London home with a deposit of as little as £13,759 in Thamesmead, using the government-backed 95% mortgage scheme.
- In England, London saw the lowest annual price growth of 6.3% between June 2020 and 2021, according to the Government’s press release yesterday (18/09/2021)*
- There are nine postcode areas in London where making the most of the 5% deposit scheme, buyers would need less than £20,000 for a deposit.
The ten most affordable postcodes to buy a property in London
|London Postcode||Areas covered||Average property price||5% Deposit|
|E6||East Ham, Beckton||£350,124||£17,506|
Over half of the postcodes where buyers would need less than a £20,000 deposit are located in Southeast London with areas including Thamesmead, Abbey Wood, South Norwood, Plumstead, Woolwich, Anerley and Penge. SE28 is the most affordable postcode to buy a property in London, with Thamesmead being the only area you could purchase a home with a deposit of less than £15,000.
New property price data reveals the most affordable and the most expensive postcodes to buy a property in London
- St Johns Wood, in the borough of Westminster, is home to some of the most expensive properties in London – with the average price paid for a property in NW8 being £5.8 million1.
- In England, London saw the lowest annual price growth of 6.3% between June 2020 and 2021
- First-time buyers could be able to buy a London home, with a deposit of as little as £13,759 in the most affordable area, Thamesmead.
The property market has boomed over the past year, thanks to the stamp duty holiday which has given a lot of first-time buyers the opportunity to get their foot on the property ladder. Coupled with the introduction of the new government-backed 5% deposit scheme, designed to help home buyers, the market isn’t showing any signs of slowing down just yet.
A new analysis of London’s property prices shows the areas of the city that are the most affordable for home buyers looking to buy something of their own. The research also revealed the most expensive areas of London to purchase a home, with average property prices in these areas almost reaching £2 million.
The top ten most affordable areas to buy a property in London:
|London Postcode||Areas covered||Average property price|
|E6||East Ham, Beckton||£350,124|
The quiet residential area of Thamesmead is the most affordable area in London to buy a property. A home in the postcode area of SE28 has an average price of £275,194, almost £50,000 cheaper than the next most affordable area of Lower Edmonton.
Southeast London is home to five of the top ten most affordable areas in London to buy a home, all coming in under £381,000. This means, under the new 5% deposit scheme, home buyers are able to get their foot on the property ladder in London with a deposit of as little as £13,759.
The top ten most expensive areas to buy a property in London:
|London Postcode||Areas covered||Average property price|
|W1||Marylebone, Mayfair, Soho||£1,820,143|
|WC2||Covent Garden, Holborn, Strand||£1,667,871|
|W11||Holland Park, Notting Hill||£1,446,853|
|SW1||Belgravia, Pimlico, Westminster||£1,295,609|
|NW3||Hampstead, Swiss Cottage||£1,137,545|
|NW8||St John’s Wood||£1,112,247|
Eight of the top ten most expensive areas of London are located in the West and South West, with the average property price in these areas coming in at £1.56 million. Two postcodes in North West London have made the top ten, with St John’s Wood, Hampstead and Swiss Cottage having average property prices above £1 million.
We also looked at some of the best areas to invest in for those looking for the best up and coming areas, tenant demand or the locations with the best schools.
The best up and coming area for property: Tottenham
Tottenham is one of the top ten most affordable areas in London to buy, with the average property price coming in at just over £400, 000. As well as new homes being built and Tottenham Hotspur FC’s impressive new stadium, the area is currently in the early stages of a 20-year regeneration plan. Taking into account the changes in the area and plans for the future, it looks like it is set to be the best up and coming place for properties in London.
The best area to invest in property: Willesden Green
This area is hugely popular with renters making it a great place to invest in property, for those looking to be a landlord or expand their portfolio. Demand for rental properties is high in this North West borough and rental income returns a yield of 3.6%. In addition, house prices have grown by 26% in the area since April 2020, and this strong growth looks set to continue. Whilst it might not be the cheapest area to buy a property, with the average property costing around £457,000, it is a highly sought-after area for young professional renters, so investors could see a healthy long-term return.
The best area for schools: Harrow
Harrow could be the best place to buy a new home if having access to great schools is high on the priority list for families. The area is home to 16 schools rated “Outstanding”, giving parents plenty to choose from, including both state and private options. Some of the highly rated schools in the area include Belmont, Marlborough, and Whitmore High. The average property price in the area is £460,408, which is more affordable than many other areas of London.
Further breakdown of the postcode property prices can be found on the Ellis and Co website
1 According to Office of National Statistics data
2The definitive list of average property prices by London postcodes has been created using data from Dataloft Inform and included average property prices up until May 2021.