20 Cheapest Areas of London to Buy a House or Flat
London's cheapest postcode is IG11 (Barking), where the average asking price is £320,268. That is 41% below the capital's average sold price of £544,814.
Using July 2026 average asking prices alongside HM Land Registry sold prices to May 2026, we've ranked the 20 most affordable postcodes in the capital. All 20 have average asking prices under £405,000, spread across East, North, South and West London. The rankings are built on asking prices; the London and England averages alongside them are sold prices.
Article updated: August 2026
London remains 87% more expensive than England's average sold price of £292,095, but specific postcodes still sit far below the capital's headline figures. On HM Land Registry data for May 2026, London's average sold price is £544,814 across all property types: £1,138,974 for detached houses, £716,038 for semi-detached, £631,396 for terraced and £422,576 for flats and maisonettes. The same data shows London's average fell 3.7% in the year to May 2026, while England's rose 2.3%.
Price is only half the story, so this guide also measures affordability. Against each borough's median full-time salary, the 20 cheapest postcodes range from 7.2 to 10.0 times local pay. The Office for National Statistics puts the England-wide ratio at 7.6 and London's at 10.6, so even the capital's cheapest corners are around the national norm at best.
We analysed 209 London postcode districts with enough current sales data to read, then ranked the 20 most affordable, complete with sold price per square foot, average gross yields and regional breakdowns. Postcode districts do not follow the Greater London boundary exactly, so a couple of entries, such as DA1, run over the line into Kent. Districts that sit mostly outside the capital are covered separately in the alternatives section near the end.
Looking beyond London? Check our guides on the cheapest places to buy in Birmingham, the cheapest areas of Manchester, and the cheapest houses in England.
Are there houses under £300k in London?
On average prices, no. If your total budget is £300,000 (not deposit, but total purchase price), none of the 209 London postcode districts in the July 2026 data has an average asking price below that figure.
Individual properties will come up below these figures. The numbers here are averages across every property type, meant to narrow down which London locations fit a lower-priced budget.
The cheapest London postcode is IG11 (Barking) at £320,268 average asking price, roughly £20,000 over the £300k mark. Next come DA17 (Belvedere) at £328,194 and DA8 (Erith) at £343,801.
What £300k realistically buys you in London:
- A flat in IG11 (Barking) - London's cheapest postcode, where flats across Barking & Dagenham averaged £241,719 on May 2026 sold prices. Barking station has District and Hammersmith & City line trains plus the Overground.
- A flat in DA17 (Belvedere) or DA8 (Erith) - Flats across Bexley averaged £243,531 on May 2026 sold prices, with Southeastern rail from both.
- A flat in SE28 (Thamesmead) - The district straddles Bexley and Greenwich, where flats averaged £243,531 and £353,499 respectively. Transport is bus-led, with the Elizabeth line running from nearby Abbey Wood.
- Shared ownership - A share of a more expensive home, usually between 25% and 75%, under the government's shared ownership scheme.
For context, London's average sold price for flats and maisonettes is £422,576 on HM Land Registry data for May 2026. So £300k sits 29% below even the flat average, which means compromises on size, location or condition. Investors hunting entry points under these averages typically look at below market value properties rather than waiting for the right open-market listing.
At these prices the options are mostly flats: on May 2026 sold prices, flats averaged £241,719 in Barking & Dagenham and £243,531 in Bexley, while terraced houses in both boroughs averaged close to £400,000, well above these district averages. Flats mean leasehold, so service charges join the monthly numbers, and ground rent applies mainly to older leases (leases granted since 30 June 2022 are usually a zero-value peppercorn under government leasehold rules). On some blocks, lenders also look at lease length and cladding or EWS1 status before approving a mortgage.
London's cheapest postcodes under £360k
Six London postcodes have average asking prices under £360,000:
| Postcode (Area) | Avg Asking Price | Rail Links |
|---|---|---|
| IG11 (Barking) | £320,268 | District, Hammersmith & City, Overground |
| DA17 (Belvedere) | £328,194 | Southeastern |
| DA8 (Erith) | £343,801 | Southeastern |
| SE28 (Thamesmead) | £348,596 | Bus to Abbey Wood (Elizabeth line) |
| DA1 (Dartford, Crayford) | £353,982 | Southeastern |
| SE25 (South Norwood) | £356,185 | London Overground (Norwood Junction) |
Four of the six sit in a single corridor running from Thamesmead through Belvedere and Erith towards Dartford, with South Norwood further south-west and Barking the only entry north of the Thames. IG11 (Barking) is the only district in this table with Underground trains, and its £320,268 average has held the number one spot. DA1 is the boundary case: the postcode takes in Crayford on the Bexley side and runs over the Greater London line into Dartford itself.
For investors, the yields in this guide are indicative gross asking yields (advertised monthly rent multiplied by 12, divided by the asking price). Across this corridor they ran between 5.6% and 6.2% in July 2026. Our guide to rental yields explains how those figures are calculated and what sits behind them.
Top 20 Cheapest Places to Buy in London
Based on July 2026 asking prices and May 2026 HM Land Registry sold prices, these 20 London postcodes have the lowest average asking prices in the capital. Sold price per square foot shows how much space the money buys, and the indicative gross asking yield measures advertised rents against those asking prices.
| Rank & Area | Avg Asking Price | Sold £ per Sq Ft | Avg Gross Yield |
|---|---|---|---|
| 1. IG11 (Barking) | £320,268 | £431 | 6.6% |
| 2. DA17 (Belvedere) | £328,194 | £436 | 5.7% |
| 3. DA8 (Erith) | £343,801 | £411 | 5.6% |
| 4. SE28 (Thamesmead) | £348,596 | £453 | 6.2% |
| 5. DA1 (Dartford, Crayford) | £353,982 | £434 | 5.9% |
| 6. SE25 (South Norwood) | £356,185 | £483 | 5.8% |
| 7. CR0 (Croydon) | £366,238 | £438 | 5.2% |
| 8. SE20 (Penge, Anerley) | £368,596 | £553 | 5.3% |
| 9. EN3 (Enfield Lock, Ponders End) | £369,348 | £461 | 6.3% |
| 10. RM10 (Dagenham East) | £371,078 | £452 | 6.2% |
| 11. N9 (Lower Edmonton) | £372,867 | £458 | 5.9% |
| 12. RM9 (Dagenham, Heathway) | £380,952 | £463 | 6.1% |
| 13. RM8 (Dagenham, Becontree Heath) | £384,269 | £464 | 6.1% |
| 14. UB5 (Northolt) | £385,337 | £498 | 5.4% |
| 15. TW13 (Feltham) | £388,526 | £493 | 5.7% |
| 16. TW14 (North Feltham, Hatton) | £396,740 | £507 | 5.4% |
| 17. E13 (Plaistow) | £398,481 | £462 | 5.9% |
| 18. UB7 (West Drayton) | £399,662 | £495 | 5.1% |
| 19. RM3 (Harold Hill) | £400,392 | £453 | 6.1% |
| 20. IG1 (Ilford) | £404,684 | £456 | 5.2% |
The spread tells you something about London's affordability pattern. The cheapest areas cluster in three zones: outer East London (Barking, Dagenham, Harold Hill, Ilford), the south-east river corridor (Thamesmead, Belvedere, Erith, plus Croydon, South Norwood and Penge further south), and West London's Heathrow corridor (Northolt, Feltham, West Drayton).
Sold price per square foot varies more than the headline prices do. DA8 (Erith) recorded £411, the lowest of any London postcode in this analysis, while SE20 (Penge) reached £553 despite a similar asking price. In plain terms, the same budget bought around a third more space in Erith than in Penge.
On the rental side, seven of the 20 recorded average gross yields of 6% or more in July 2026, led by IG11 (Barking) at 6.6%. In my experience the asking price is the wrong place to start a shortlist. I've always bought income first, so the yield column matters as much as the price one. Five-year sold-price growth also split sharply across the list: RM8 (Dagenham) rose 20.9% over five years, while E13 (Plaistow) fell 3.1% and UB5 (Northolt) fell 2.8% over the same period. Liquidity is another difference the averages hide: CR0 (Croydon) recorded 106 sales a month, the most of any postcode in the top 20. For borough-by-borough analysis of every one of these areas, see our London buy-to-let guide. Current buy to let properties for sale show what these numbers look like on real deals.
Cheapest Areas by London Region
London's affordable postcodes cluster in specific corridors. The following breakdown shows the five cheapest postcodes in each region on July 2026 asking prices, with sold price per square foot and average gross yield for comparison.
East London
East London contains London's single cheapest postcode: IG11 (Barking) at £320,268, which also recorded the highest average gross yield in the capital's top 20 at 6.6%. The affordable corridor runs from Barking through the three Dagenham postcodes, mostly within Barking & Dagenham (IG11 itself straddles the Newham boundary), with Plaistow closing the five. Prices here sat 27-41% below the London average.
| Rank & Area | Avg Asking Price | Sold £ per Sq Ft | Avg Gross Yield |
|---|---|---|---|
| 1. IG11 (Barking) | £320,268 | £431 | 6.6% |
| 2. RM10 (Dagenham East) | £371,078 | £452 | 6.2% |
| 3. RM9 (Dagenham, Heathway) | £380,952 | £463 | 6.1% |
| 4. RM8 (Dagenham, Becontree Heath) | £384,269 | £464 | 6.1% |
| 5. E13 (Plaistow) | £398,481 | £462 | 5.9% |
The three Dagenham postcodes were among the fastest growers in the whole top 20 over five years: RM8 rose 20.9%, RM9 rose 18.9% and RM10 rose 15.5% on sold prices. E13 (Plaistow) is the outlier, down 3.1% over the same five years. Barking station has District and Hammersmith & City line trains plus the Overground.
For detailed analysis of yields, tenant demand and investment potential across these postcodes, see our Barking buy-to-let guide and Newham investment guide.
North London
North London's cheapest postcodes line up along the Lea Valley on Enfield's eastern edge, from Enfield Lock down through Edmonton to Tottenham. Enfield Council's Meridian Water scheme, set to deliver 10,000 homes and 6,000 jobs, sits in the same corridor. Prices in the two cheapest districts sat around 32% below the London average.
| Rank & Area | Avg Asking Price | Sold £ per Sq Ft | Avg Gross Yield |
|---|---|---|---|
| 1. EN3 (Enfield Lock, Ponders End) | £369,348 | £461 | 6.3% |
| 2. N9 (Lower Edmonton) | £372,867 | £458 | 5.9% |
| 3. N18 (Upper Edmonton) | £430,435 | £462 | 5.6% |
| 4. NW9 (Colindale, Kingsbury) | £438,571 | £571 | 5.7% |
| 5. N17 (Tottenham) | £438,972 | £558 | 5.8% |
There is a clear step in this region: EN3 and N9 sit under £373,000, then the next three jump £57,000 or more. EN3's 6.3% average gross yield was the second-highest in the London top 20. The £ per square foot figures split the group too, with the Edmonton districts around £460 while NW9 and N17 pushed £560 and above, so the two cheapest also bought the most space.
Borough-level breakdowns for this corridor sit in our Enfield buy-to-let guide and Haringey investment guide.
South London
South London holds five of the six cheapest postcodes in the capital, strung along the Thames from Thamesmead to the Dartford fringe. DA8 (Erith) recorded the lowest sold price per square foot of any London postcode in this analysis at £411. Southeastern rail serves Belvedere, Erith and Dartford, and the Elizabeth line runs from Abbey Wood on Thamesmead's doorstep.
| Rank & Area | Avg Asking Price | Sold £ per Sq Ft | Avg Gross Yield |
|---|---|---|---|
| 1. DA17 (Belvedere) | £328,194 | £436 | 5.7% |
| 2. DA8 (Erith) | £343,801 | £411 | 5.6% |
| 3. SE28 (Thamesmead) | £348,596 | £453 | 6.2% |
| 4. DA1 (Dartford, Crayford) | £353,982 | £434 | 5.9% |
| 5. SE25 (South Norwood) | £356,185 | £483 | 5.8% |
Belvedere ranked ahead of Erith at the top of this table on July 2026 asking prices, £328,194 against £343,801, though Erith still bought the most space per pound. Both postcodes grew on five-year sold prices, DA17 up 13.9% and DA8 up 9.6%. SE28 (Thamesmead) straddles the Greenwich and Bexley boroughs and paired the group's lowest entry prices with a 6.2% average gross yield. South Norwood is the odd one out geographically, sitting inland near Croydon with London Overground trains from Norwood Junction.
For detailed borough analysis, see our Bexley property guide, Croydon buy-to-let guide and Greenwich investment guide.
West London
West London's affordable postcodes follow the Heathrow corridor, from Northolt down through Feltham to West Drayton and Hayes. The Elizabeth line serves West Drayton and Hayes & Harlington, Northolt is on the Central line, and Feltham runs on South Western Railway services. Prices sat 25-29% below the London average, the smallest discounts of the four regions.
| Rank & Area | Avg Asking Price | Sold £ per Sq Ft | Avg Gross Yield |
|---|---|---|---|
| 1. UB5 (Northolt) | £385,337 | £498 | 5.4% |
| 2. TW13 (Feltham) | £388,526 | £493 | 5.7% |
| 3. TW14 (North Feltham, Hatton) | £396,740 | £507 | 5.4% |
| 4. UB7 (West Drayton) | £399,662 | £495 | 5.1% |
| 5. UB3 (Hayes) | £408,227 | £534 | 5.5% |
West London is the most expensive of the four regions on £ per square foot, with all five postcodes at £493 or above and UB3 (Hayes) topping the group at £534. The growth stories diverged sharply here: TW13 (Feltham) rose 16.6% on five-year sold prices while UB5 (Northolt) fell 2.8%, leaving the two within £3,200 of each other on asking price. Hayes has Elizabeth line trains from Hayes & Harlington station, and West Drayton is on the same line one stop further out.
For more on West London investment, see our Hounslow buy-to-let guide and Hillingdon property guide.
How Affordable Are London's Cheapest Areas?
Price alone does not tell you whether an area is affordable for the people who live there. A £350,000 flat means something different where typical pay is £51,000 than where it is £38,000. So this table divides each postcode's average asking price by the median full-time salary in its borough, from the ONS Annual Survey of Hours and Earnings 2025 via Nomis. Each postcode is matched to the borough shown in its row; where a district straddles two boroughs, both readings are given below.
Two benchmarks for reading it: the ONS puts England's house-price-to-earnings ratio at 7.6 and London's at 10.6 in its 2025 affordability bulletin. The ONS builds those ratios on median sold prices against median earnings, while this table uses the mean asking price against the borough's median salary, so treat the ONS figures as a scale benchmark rather than a like-for-like comparison. The table runs from the lowest ratio to the highest.
| Area | Avg Asking Price | Borough Median Salary | Price-to-Salary |
|---|---|---|---|
| 1. SE20 (Penge) — Bromley | £368,596 | £51,225 | 7.2x |
| 2. DA17 (Belvedere) — Bexley | £328,194 | £43,969 | 7.5x |
| 3. SE28 (Thamesmead) — Greenwich | £348,596 | £45,274 | 7.7x |
| 4. DA8 (Erith) — Bexley | £343,801 | £43,969 | 7.8x |
| 5. SE25 (South Norwood) — Croydon | £356,185 | £44,326 | 8.0x |
| 6. DA1 (Dartford, Crayford) — Bexley | £353,982 | £43,969 | 8.1x |
| 7. CR0 (Croydon) — Croydon | £366,238 | £44,326 | 8.3x |
| 8. IG11 (Barking) — Barking & Dagenham | £320,268 | £38,467 | 8.3x |
| 9. EN3 (Enfield Lock) — Enfield | £369,348 | £43,888 | 8.4x |
| 10. N9 (Lower Edmonton) — Enfield | £372,867 | £43,888 | 8.5x |
| 11. RM3 (Harold Hill) — Havering | £400,392 | £46,045 | 8.7x |
| 12. IG1 (Ilford) — Redbridge | £404,684 | £44,851 | 9.0x |
| 13. E13 (Plaistow) — Newham | £398,481 | £42,595 | 9.4x |
| 14. UB5 (Northolt) — Ealing | £385,337 | £40,889 | 9.4x |
| 15. UB7 (West Drayton) — Hillingdon | £399,662 | £42,250 | 9.5x |
| 16. TW13 (Feltham) — Hounslow | £388,526 | £40,870 | 9.5x |
| 17. RM10 (Dagenham East) — Barking & Dagenham | £371,078 | £38,467 | 9.6x |
| 18. TW14 (North Feltham) — Hounslow | £396,740 | £40,870 | 9.7x |
| 19. RM9 (Dagenham, Heathway) — Barking & Dagenham | £380,952 | £38,467 | 9.9x |
| 20. RM8 (Dagenham, Becontree Heath) — Barking & Dagenham | £384,269 | £38,467 | 10.0x |
The rankings shift completely once local pay enters the picture. SE20 (Penge) ranks only eighth on price but first on affordability at 7.2x, because Bromley's £51,225 median salary is the highest of any borough in this group. IG11 (Barking), the cheapest postcode by price, lands mid-table at 8.3x: Barking & Dagenham's £38,467 median salary is the lowest in the group, and it drags all four of the borough's postcodes towards the bottom. RM8 sits last at 10.0x. For local buyers on local pay, Dagenham is harder to reach than its prices suggest.
On this table's borough assignments, only SE20 and DA17 come in under the ONS England figure of 7.6, while every one of the 20 sits below London's overall 10.6. These areas are affordable by the capital's standard, not by the country's. A note on the boundary cases: SE20 straddles Bromley and Croydon, reading 7.2x on Bromley pay but 8.3x on Croydon's; IG11 straddles Barking & Dagenham and Newham, 8.3x against 7.5x. SE28 straddles Greenwich and Bexley, and DA1's earnings basis is Bexley, the borough its Crayford end sits in.
The ratio matters for landlords as well as homeowners. In IG11, tenure data shows 25.3% of households renting privately and a further 30.4% in social housing. For anyone comparing investment property in the UK, the ratio sits alongside figures like that when reading what tenants in an area can pay.
Understanding House Price to Income Ratios
The ratio shows how many years of gross pay it would take to buy outright. SE28 (Thamesmead) at £348,596 against Greenwich's £45,274 median salary gives 7.7: seven and a bit years of every penny, before tax or living costs.
The mortgage maths makes the gap concrete. Lenders typically offer around 4.5 times income, so one person on Greenwich's median salary could borrow roughly £203,700. Even with a 30% deposit of £104,579, that reaches about £308,300, still £40,000 short of SE28's average. The income figures sit close to or above a full median salary, which is where second incomes or family help usually enter.
How London's Cheapest Areas Compare
London's 20 cheapest postcodes span 7.2x to 10.0x local pay. Grouped against the national benchmark:
- Under the ONS England figure of 7.6x: SE20 (7.2x) and DA17 (7.5x), the only two below it on our measure.
- 7.6x to 8.5x: SE28, DA8, SE25, DA1, CR0, IG11, EN3 and N9. Around the England norm, and all well under London's 10.6x.
- 8.5x to 9.5x: RM3, IG1, E13, UB5 and UB7. Prices here ran well ahead of borough pay.
- Over 9.5x: TW13, RM10, TW14, RM9 and RM8. The widest gaps between local salaries and local prices in the top 20, all in Hounslow or Barking & Dagenham.
First-Time Buyers: What Income Do You Need?
London's cheapest areas still demand serious savings and income. The table covers the ten cheapest areas and uses illustrative assumptions: the 30% deposit basis applied across this site, and a 4.5 times income multiple, a common lender guide multiple.
Deposit and Income Requirements
| Area | Avg Asking Price | 30% Deposit | Income Guide (4.5x) |
|---|---|---|---|
| IG11 (Barking) | £320,268 | £96,080 | ~£50,000 |
| DA17 (Belvedere) | £328,194 | £98,458 | ~£51,000 |
| DA8 (Erith) | £343,801 | £103,140 | ~£53,000 |
| SE28 (Thamesmead) | £348,596 | £104,579 | ~£54,000 |
| DA1 (Dartford, Crayford) | £353,982 | £106,195 | ~£55,000 |
| SE25 (South Norwood) | £356,185 | £106,856 | ~£55,000 |
| CR0 (Croydon) | £366,238 | £109,871 | ~£57,000 |
| SE20 (Penge, Anerley) | £368,596 | £110,579 | ~£57,000 |
| EN3 (Enfield Lock) | £369,348 | £110,804 | ~£57,000 |
| RM10 (Dagenham East) | £371,078 | £111,323 | ~£58,000 |
Even in IG11 (Barking), London's most affordable postcode, a 30% deposit means finding £96,080 up front, with a household income around £50,000 to support the remaining mortgage. Across the rest of the ten cheapest, the deposit runs from about £98,000 to £111,000 and the income guide from £51,000 to £58,000. On this basis the cash up front is the bigger hurdle. Most first-time buyers borrow at a much higher loan-to-value than this, which shrinks the deposit needed and moves the pressure to income and monthly affordability instead.
Stamp duty comes on top of the deposit at these prices. Our stamp duty calculator works out the figure for any purchase price. And because every extra pound of deposit is a pound you do not need to borrow against your salary, our loan to value calculator shows how the deposit percentage changes the borrowing picture.
Note: Mortgage criteria vary by lender and your personal circumstances. Some lenders offer higher multiples for certain professions or with larger deposits. Always speak to a mortgage broker for advice specific to your situation.
Cheaper Alternatives Near London
If London's cheapest postcodes are still out of reach, the picture changes fast just over the boundary. The comparison splits two ways: the commuter counties and towns, and the fringe postcode districts that sit outside Greater London but function as part of its market.
First, the counties and towns, against London's £544,814 average sold price on May 2026 HM Land Registry data:
| Area | Avg Sold Price | vs London Avg | Avg Terraced Price |
|---|---|---|---|
| Kent (county avg) | £345,918 | 37% below | £297,210 |
| Watford | £395,360 | 27% below | £419,725 |
| Oxford | £473,467 | 13% below | £463,370 |
| Guildford | £522,008 | 4% below | £420,898 |
Kent carries the biggest headline discount at 37% below London, though a county average hides a wide spread between its towns. The average terraced house across Kent sold for £297,210, below the average asking price of every postcode in the London top 20. Watford at £395,360 sits 27% below London. Oxford and Guildford are not budget alternatives: Guildford's average is within 4% of London's.
Second, the fringe districts. Several postcode areas classed with Greater London in property datasets actually sit mostly in Essex, Kent or Hertfordshire, so they are ranked here rather than in the London top 20. The table lists the districts our location data carries named entries for. Three more, RM19 (£215,284), RM20 (£281,548) and RM17 (£295,871), all in Thurrock, are cheaper still but sit outside that naming coverage. Counting those, six fringe districts came in below London's cheapest postcode on July 2026 asking prices:
| Postcode (Area) | County | Avg Asking Price | Avg Gross Yield |
|---|---|---|---|
| RM18 (Tilbury) | Essex | £301,509 | 5.3% |
| DA11 (Gravesend West) | Kent | £306,701 | 5.2% |
| DA9 (Greenhithe, Bluewater) | Kent | £312,641 | 6.0% |
| DA10 (Ebbsfleet Valley, Swanscombe) | Kent | £349,871 | 6.5% |
| RM15 (South Ockendon, Aveley) | Essex | £354,747 | 4.5% |
| WD18 (West Watford) | Hertfordshire | £355,700 | 5.4% |
| DA12 (Gravesend East) | Kent | £359,550 | 4.4% |
| EN8 (Waltham Cross, Cheshunt) | Hertfordshire | £392,970 | 4.8% |
| WD24 (North Watford) | Hertfordshire | £399,188 | 4.7% |
RM18 (Tilbury), DA11 (Gravesend West) and DA9 (Greenhithe) all recorded lower average asking prices than IG11, London's cheapest, and the three Thurrock districts sit lower again. Prices step down fastest along the Thames estuary. DA10 (Ebbsfleet Valley) paired a sub-£350k entry price with a 6.5% average gross yield, beaten by only one postcode inside the London top 20 (IG11 at 6.6%). Full county context is in our Essex buy-to-let guide and Hertfordshire property guide.
Frequently Asked Questions
How much do you need to earn to buy a house in London?
For London's cheapest area, IG11 (Barking) at £320,268, illustrative maths on a 30% deposit and a 4.5 times income multiple works out at roughly £96,080 up front and a household income around £50,000. Borrowing at a higher loan-to-value shrinks that deposit and raises the income needed instead. For the London average of £544,814, the same assumptions need about £163,400 down and £85,000 of income. Barking & Dagenham's median full-time salary is £38,467, which is why even the capital's cheapest postcode usually takes two incomes or family help.
What is the average house price in London?
London's average sold price is £544,814 on HM Land Registry data for May 2026. That splits into £1,138,974 for detached houses, £716,038 for semi-detached, £631,396 for terraced and £422,576 for flats and maisonettes. The cheapest postcode, IG11 (Barking), averaged £320,268 on asking prices, while at the other end of the market whole streets trade in the millions. For that end of the scale, see London's most expensive streets.
Is it cheaper to live in London or Manchester?
Manchester, by a wide margin. London's average sold price of £544,814 is more than double Manchester's £247,469 on May 2026 HM Land Registry data. The gap holds at the cheap end too: London's most affordable postcode, IG11 (Barking), averaged £320,268 on asking prices against around £248,381 in M40 (Miles Platting, Newton Heath). London's counterweight has historically been its pay and depth of jobs market, which the affordability ratios in this guide put into context.
Are house prices falling in London?
On the latest complete HM Land Registry data, yes: London's average sold price fell 3.7% in the year to May 2026, while England's rose 2.3%. The boroughs behind the cheapest postcodes moved in different directions over that year, with Havering up 2.8% and Bexley up 2.2%, against Barking & Dagenham down 0.2%, Croydon down 0.4% and Hounslow down 2.4%. What that mix has meant for rents and yields borough by borough is covered in our London buy-to-let guide.
Which parts of London are cheapest?
Outer East and South East London. IG11 (Barking) is the cheapest postcode at £320,268 average asking price, followed by DA17 (Belvedere) at £328,194 and DA8 (Erith) at £343,801. No London postcode averages under £300,000. Individual properties will come up below these figures, which are averages across every property type. The full table above ranks the top 20 cheapest areas in London, and the cheapest corners of each compass region have their own tables further up the page.
Are there houses for sale in London under £50,000?
Realistically, no. None of the 209 London districts in this analysis has an average asking price under £320,000, so the cheapest district average is more than six times a £50,000 budget. Where £50,000 does fit is as part of a purchase: it covers just over half of the £96,080 that a 30% deposit implies in IG11 (Barking), London's cheapest postcode. Outside the capital, average prices drop far lower; our guide to the cheapest houses in England covers those markets.
Ready to buy property?
Browse investment properties with prices and gross yields shown for each opportunity.
Get property alerts