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Where to buy in London


Where to buy in London

 

Don’t let the capital’s high average property prices and deposits deter you from stepping onto the property ladder. With prices in some boroughs coming in at under the London average and a variety of home buying schemes to give first-time buyers a boost, there are a number of ways to enter the housing market. Here’s what you need to know when considering where to buy in London. 

 

London Property Costs

 

According to Land Registry Data, the average house price in London is £483,568. And with the average deposit in London sitting at £94,088, more first-time buyers than ever before are looking to their parents for help when stepping onto the property ladder for the first time. First-time buyers are also looking to longer mortgage terms to manage the repayments on their homes, with 60% opting for mortgages taken over 25 years. The average age of first-time buyers is also highest in London at 32-years-old compared with the rest of the UK at 30-years-old. Despite this, property in London is still in high demand.  

 

 

7 Facts About Property in London 

 

Taken from the Greater London Authority report on Housing in London.

 

  1. If residential housing developments can keep up, the Greater London Authority predicts that by 2035, the London population could exceed 10 million people.

 

  1. In the last two decades, the number of jobs in London has grown by 40% while the number of homes has grown by just 15%.

 

  1. Over the last decade, an average of 20,030 homes have been built a year in London.

 

  1. Residential density is highest in the areas adjacent to London’s central business districts, with Pimlico being the densest, followed by Mayfair and Paddington.

 

  1. Tower Hamlets is the fastest growing residential London borough, while Havering is the slowest.

 

  1. The average floor space of a home in London is 87m2 compared to the average floor area across the UK, which is 95m2.

 

  1. Average house prices are highest in Inner West London and lowest in Outer East London.

 

Is Buying in London Realistic for First Time Buyers?

 

In the Autumn Budget, the Chancellor announced that first-time buyers will pay zero stamp duty on the first £300,000 of any home that costs up to £500,000. Since the cost of a typical first home varies quite drastically across London, this gives first-time buyers an opportunity to get onto the market in areas outside of London and work their way up the ladder into more prominent areas.

 

Douglas & Gordon CEO James Evans says of the budget, “At a macro level, the scale of this investment package into housing infrastructure, building programmes and taxation reductions can only mean one thing:  long-term house price growth will continue across the board, but perhaps at more prudent rates versus wage inflation. This is a government not only endorsing long-term security in the property market, but recognising London as the global financial capital for the foreseeable future under almost all circumstances”.

 

According to Bloomberg and Land Registry Data, average median prices are highest in Kensington and Chelsea at £1,382,914, and lowest in Barking and Dagenham at £308,277, with Bexley and Havering sitting under the £360,000 mark.

 

 

London Boroughs Ranked from Most to Least Affordable

 

Based on median home prices from Land Registry Data and price studies YoY via Bloomberg, some of London’s affordable areas can offer great long-term value and price growth. Barking and Dagenham saw a 4% increase in prices from last year, while Bexley saw a 5.3% increase. Below are London boroughs ranked from most to least affordable.

 

 

Barking & Dagenham

£308,277

 

Kingston Upon Thames

£495,940

Bexley

£348,506

 

Harrow

£512,115

Havering

£355,893

 

Lambeth

£517,465

Croydon

£376,322

 

Hackney

£525,581

Sutton

£384,590

 

Brent

£529,495

Hounslow

£397,813

 

Southwark

£531,353

Newham

£399,891

 

Barnet

£544,943

Enfield

£405,600

 

Haringey

£555,496

Greenwich

£411,087

 

Islington

£631,030

Hillingdon

£425,838

 

Wandsworth

£650,249

Redbridge

£436,151

 

Richmond Upon Thames

£697,746

Bromley

£447,212

 

Hammersmith & Fulham

£796,942

Lewisham

£451,825

 

Camden

£801,266

Waltham Forest

£457,217

 

City of London

£843,807

Tower Hamlets

£473,284

 

Westminster

£972,843

Merton

£481,441

 

Kensington & Chelsea

£1,382,914

Ealing

£482,655

 

 

 

 

 

Best Places to Buy in London

 

 

Top five boroughs with the highest year on year price growth increases include:

 

1. Brent – 18%

 

2. Kensington and Chelsea – 17.1%

 

3. Haringey – 16%

 

4. Lewisham – 15.5%

 

5. Richmond upon Thames – 14.6%

 

 

For expert advice on London property, speak to a specialist at Douglas and Gordon.