London house prices can be eye-poppingly expensive. There’s a serious shortage of homes in the city and a growing population that’s set to hit 10 million over the coming years.
The borough of Kensington and Chelsea is the most expensive place to buy a home not only in London, but the whole of the UK, according to the most recent house price index from the Office for National Statistics (ONS).
In January 2019, the average house price in Kensington and Chelsea was £1,407,430, though this is a fall of 3.8% over the year as the market falters in the most expensive areas.
That compares to an average UK price of £228,147, up 1.7% annually.
Conversely, you can pick up a home in Burnley for just a fraction of the price. The average value in Burnley was just £78,450, a 2.2% yearly rise, making it the cheapest place in England.
But it’s not true to say that everywhere in London is unaffordable. There are boroughs where it’s possible to pick up a home for a reasonable price.
Many first-time buyers in London want it all: space, proximity to a station, a central or inner area, green space, and everything in between.
You might be able to secure most of your wish list if you’re willing to do one thing: compromise on location.
There are bargains to be had if you are willing to look a bit further out. With Crossrail due to begin running shortly, many more areas will soon be connected to central London.
Here are the five cheapest London boroughs by average price as of January 2019, as well as the year-on-year change.
Havering: £373,653 (+2.7%)
Out in the east is Havering, which has bundles of family homes available. There are several large settlements in the borough, including Romford, Hornchurch, and Upminster, with great connections into central London via the District Line, C2C, TfL Rail, and soon Crossrail too.
Croydon: £360,905 (-3.1%)
Down south is Croydon, which is undergoing a £5.25bn regeneration.
Croydon has a large and bustling high street with a smorgasbord of shops, plenty of local culture, lots of new housing, as well as beautiful period homes, and great rail connections, including the Overground. In the south of the borough is plenty of green space too. There are also great links to the south coast, including Brighton.
Newham: £357,612 (+4%)
An eastern borough, Newham contains Stratford, East Ham, Canning Town, and the increasingly popular Forest Gate.
The connections are great, with Stratford as the main transport hub, boasting rail services reaching Essex, Suffolk, and Norfolk, the London Overground, Central Line, DLR, and even Eurostar. Add Crossrail to that soon, too.
There’s plenty of new and old housing on offer across the borough, which also features Westfield shopping centre, the Olympic Park, London City Airport, Royal Docks, and much more besides.
Bexley: £341,060 (-0.31%)
Bexley sits along the River Thames nestled between Greenwich and Bromley. The borough's main settlements are Welling, Bexleyheath, Erith, Belvedere, and Sidcup.
There are decent rail connections to central London and plenty of affordable housing options. Crossrail will also feature prominently in Bexley and the borough is a priority for regeneration.
Barking and Dagenham: £299,399 (+2.7%)
The borough, whose main settlements of Barking and Dagenham lend it their names, is by some distance the most affordable in London. Though rough around the edges, the borough does have a lot going for it.
There are plenty of large Victorian family homes here and good transport connections to the centre, including London Overground, C2C, the District Line, and Hammersmith and City Line. It'll also get a Crossrail station at Chadwell Heath right on the borough's northern border.