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Buying in London. How much home can I afford?

Sep 09, 2024
How Much House Can I Afford UK Buyers Guide
London brims with exciting attractions, making it a brilliant place for all homebuyers. If you’re considering relocating to the capital and want to learn about its house and flat prices, we’re here to help. Our guide offers an overview of London’s property market and the most affordable areas.

London’s property market

London's property market is versatile and diverse, changing significantly from one neighbourhood to another. 
 
House prices in the capital have fallen by 3.9% since January, according to HM Land Registry. However, some areas have experienced a significant increase in property demand, including Camden, Richmond and Hackney. 
 
Rent prices have also risen by 5.1% since the beginning of the year.
 

House prices in London

 
The average house price in London is £720,000, according to Rightmove. In 2023, terraced houses cost £832,992 on average, while semi-detached properties cost £813,556. 
 

Flat prices in London

Flats sold for an average of £557,000 in 2023, according to Rightmove. They were the most popular choice among buyers.
 

The most affordable areas to live in London

Below are some of the most affordable areas in London for buying a house.
 

1. Plumstead

Average house prices: £214,000
 
A thriving borough in southeast London, Plumstead in Zone 4 is among London’s cheapest areas for buying a house. Located a stone’s throw from the Elizabeth line at Woolwich, it offers superb commuting links to the City. Plumstead Common is ideal for families looking for large detached properties.
 
Plumstead has direct train services to Charing Cross, which take about 40 minutes. There are also many excellent schools here, including Ofsted’s top-rated Bannockburn Primary School.
 

2. Deptford

Average house prices: £352,000
 
Highly popular among first-time buyers, Deptford’s property market offers a mix of large Victorian houses and new build developments. Found in London’s Zone 2, it boasts award-winning pubs, cafés and restaurants, as well as multi-use art spaces, traditional breweries and quirky vintage shops.
 
This neighbourhood offers excellent transport links, being located on the Docklands Light Railway (DLR) line. Its train station operates services to London Bridge every 15 minutes. 
 

3. Barking & Dagenham

Average house prices: £370,000
 
Barking & Dagenham in Zone 4 strikes the perfect balance between urban and rural living. Its new regeneration project – Barking Riverside – promises state-of-the-art accommodation, sports facilities, leisure centres and riverside walks. As part of this, a new overground station was opened to connect East and North London. 
 
Barking & Dagenham boasts 25 parks and gardens as well as a nature reserve, perfect for escaping the capital’s frenzy. It also has plenty of restaurants, cafés and shops to suit all tastes.
 

4. Erith

Average house prices: £372,000
 
Sitting between South East London and Kent, Erith in Zone 6 is a brilliant place to call home. It benefits from easy access to Cannon Street in central London and is a stone’s throw from the beautiful Kent countryside and coastline.
 
Most of Erith’s housing stock was built in the 1960s. Today, it offers modern townhouses and apartments and excellent amenities for homebuyers.
 

5. Belvedere

Average house prices: £381,000
 
Located in southeast London, Belvedere is a charming town within the Borough of Bexley in Zone 5. It enjoys vast green spaces, such as Lesnes Abbey Woods and Frank’s Park, as well as beautiful riverside walks. It also boasts excellent transport links to the capital, being located next door to the Elizabeth line at Abbey Wood.
 
If you enjoy walking, the Green Chain Walk provides opportunities for relaxing strolls between the River Thames and Crystal Palace Park.
 
Looking to buy your new home? Discover our brand-new homes and flats in and around London. We also have unique homebuying offers to help you move. 
 
Call or visit our Sales Advisers today to find your new property.  
 

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