The Top 10 Cheapest Areas of London to Buy a House or Flat: A Guide
by Property Investments UKThe Property Investments UK editorial team have been researching and writing about the UK's property market for more than a decade.
London is an expensive part of the UK in which to buy a house or flat. The average house price in the UK is currently around £290,000. But the average house price in London tops £534,000. Average prices in the most expensive areas of London are now over £1 million.
But it is possible to find good value property to buy in London if you know where to look. In fact, property in the cheapest areas of London now starts from as little as £75,000.
In this report we’ve analysed property price and location data from right across London to find the top 10 cheapest places in London to buy a house or flat.
Thamesmead is currently the cheapest area of London in which to buy a property. Thamesmead is in southeast London. Thamesmead is in both the London borough of Greenwich and the London borough of Bexley.
The average house price in Thamesmead (based on the SE28 postcode) is currently just £329,263.
Thamesmead includes areas such as Thamesmead Central, Thamesmead East, Thamesmead North and Thamesmead West.
Thamesmead transport links have improved greatly since the new Elizabeth Line opened. There are train stations nearby at Abbey Wood and Royal Arsenal.
Thamesmead is a purpose-designed community originally created in the 1960s with large areas of social housing. Several areas have benefitted from regeneration and more is planned which should benefit the property market.
It is possible to buy even cheaper houses or flats in the area. The cheapest property available in Thamesmead, according to Rightmove and Zoopla, is only £150,000.
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Belvedere is the second cheapest area of London in which to buy a house or flat. Like Thamesmead Belvedere is also in southeast London. Belvedere is part of the London borough of Bexley.
The average house price in Belvedere (based on the DA17 postcode) is currently £349,539.
Belvedere includes areas such as Upper Belvedere and Lower Belvedere.
Belvedere was historically in Kent and is based around the original old village but is now a London suburb.
In the past Belvedere did not have great transport links. However, the arrival of the Elizabeth Line at Abbey Wood station means it now has fast trains towards central London, the City of London, Canary Wharf and west London. This should make Belvedere much more attractive as a place to live in future.
It is possible to buy even cheaper houses or flats in the area. The cheapest property available in Belvedere, according to Rightmove and Zoopla, is £175,000.
Barking is part of east London. Barking is within the London borough of Barking and Dagenham.
The average house price in Barking (based on the IG11 postcode area) is currently £352,549.
Barking IG11 includes areas such as Barking, Barking Riverside, Beckton, Creekmouth, Loxford, Thames View and Upney.
Barking has great transport connections by road and rail both into London and out into Essex.
Barking is an old, industrial part of London but it has undergone lots of regeneration in recent years. Barking Riverside is a huge new town which is being developed in the south of Barking right on the River Thames.
It is possible to buy even cheaper houses or flats in the area with Barking prices starting at around £130,000. (According to Rightmove and Zoopla.)
Here’s a useful article which looks at Barking, East London.
4. South Norwood
South Norwood is in southeast London. South Norwood is part of the London borough of Croydon.
Currently, the average house price in South Norwood (based on the SE25 postcode) is £363,919.
South Norwood has good transport links by road and rail. Norwood Junction into central London takes just 10-20 minutes by train. South Norwood is also convenient for a wide range of amenities, more transport links and workplaces in nearby Croydon.
It is possible to buy even cheaper houses or flats in the South Norwood area. The cheapest property available in South Norwood, according to Rightmove and Zoopla, is just £150,000.
Here’s a useful article which looks at the wider Croydon area.
Dagenham is in east London. Dagenham is part of the London borough of Barking and Dagenham. Dagenham is an old heavy industrial area which is benefitting from regeneration and improvement.
The average house price in Dagenham is around £370,000 making it the fifth cheapest place to buy in London overall. In the RM8 postcode, it is £373,436 and in the RM9 postcode, it is £371,488. The cheapest part of Dagenham is the RM10 postcode with an average of £368,211.
Areas of Dagenham include Becontree, Chadwell Heath, Collier Row, Dagenham Dock and Rush Heath.
Dagenham has really good transport links by road and rail making it a great location for London commuters looking for good-value homes to buy or rent. Chadwell Heath train station has services on the new Elizabeth Line.
It is possible to buy even cheaper houses or flats here than the average. The cheapest property in Dagenham costs just £125,000 according to Rightmove and Zoopla.
Here’s a useful article which looks at the areas of East London.
Croydon is in south London. Croydon is the largest town in the London borough of Croydon and one of the largest in Greater London. It has a population of around 385,000.
The average house price in Croydon (based on the CR0 postcode area) is currently £375,376.
The Croydon CR0 area includes districts such as the town centre itself and Addiscombe, Addington, Beddington, Broad Green, Coombe, Forestdale, New Addington, Selhurst, Shirley, Spring Park, Waddon and Woodside.
Croydon has a wide range of local amenities for retail and leisure. It also has some of the best transport links in London. Central London can be reached in 15 minutes from East Croydon train station.
Croydon's town centre has a reputation as being a 1960s-built concrete jungle, but it is undergoing much regeneration and improvement. Many new city-living apartments have been built in recent years making the area more attractive to London commuters.
While average prices are low it is possible to buy even cheaper houses or flats in Croydon. Croydon property prices start at just £75,000 according to Rightmove and Zoopla. Based on these figures Croydon has the cheapest property in London at the moment.
Here’s a useful article which looks at buy-to-let in Croydon.
Northolt is in west London. Northolt is part of the London borough of Ealing.
The average house price in Northolt (based on the Uxbridge UB5 postcode) is currently £377,604.
Northolt includes Northolt itself and also Northolt Park.
Northolt has a station on the London Underground and also a mainline train station at Northolt Park. It is also on the A40 road offering links into and out of London. Northolt is also convenient for London Heathrow Airport.
It’s possible to buy cheap property well under the average price in Northolt. According to Rightmove and Zoopla, Northolt property prices start at around £175,000.
8. West Drayton
West Drayton is in West London. West Drayton is within the London borough of Hillingdon.
The average house price in West Drayton (based on the Uxbridge UB7 postcode) is currently £388,373.
West Drayton includes areas such as West Drayton itself and Harmondsworth, Longford, Sipson and Yiewsley.
West Drayton has good access to the M4 and M25 motorways. West Drayton also has a new station on the Elizabeth Line with fast services into central London and the City, which should benefit the property market here.
West Drayton is also convenient for London Heathrow Airport. It is a convenient place for airport workers to live.
It is possible to buy much cheaper houses or flats in the area than the average of around £388,000. The cheapest property available in West Drayton according to Rightmove and Zoopla is £135,000.
Here’s a useful article which looks at the areas of West London.
Anerley is in southeast London. The Anerley area is part of the London borough of Bromley.
The average house price in Anerley (based on the SE20 postcode area) is currently £388,394.
The SE20 area includes Anerley itself and part of Beckenham, Crystal Palace and Penge.
Anerley doesn’t have a rail service into central London but the London Overground provides services to Croydon and to east and north London.
It is possible to buy even cheaper houses or flats in the area. The cheapest property available in Anerley, according to Rightmove and Zoopla, is £165,000.
Here’s a useful article which looks at the areas of South London.
Romford comes tenth in the top ten cheapest places to buy in London. Romford is in northeast London and was historically part of Essex. It is the largest town in the London borough of Havering and has a population of 36,500.
The average house price in Romford (based on the RM1 postcode) is currently £392,544.
Romford RM1 includes Romford itself plus Rise Park.
Romford has good transport links in London itself making it a good location for London commuters. Romford train station has train services on the London Overground, Elizabeth Line and mainline rail.
Romford has good local amenities, shops, and services and is popular for leisure and nightlife.
Although Romford only makes number 10 in the top ten cheapest London housing markets by average prices it is possible to buy cheap property here. According to Rightmove and Zoopla, you can buy property in Romford for as little as £135,000.
Here’s a useful article which looks at the areas of Romford.
So where are the cheapest parts of London to buy a property?
According to our latest research, the top ten cheapest areas of London in which to buy a house or flat are (in alphabetical order) Anerley, Barking, Belvedere, Croydon, Dagenham, Northolt, Romford, South Norwood, Thamesmead and West Drayton.