The property market has boomed over the past year, thanks to the stamp duty holiday which has given a lot of first-time buyers the opportunity to get their foot on the property ladder.
Coupled with the introduction of the new government backed 5 per cent deposit scheme, designed to help home buyers, the market is not showing any signs of slowing down just yet.
But which areas of the city are the most affordable for home buyers looking to acquire something of their own? And which areas are exorbitantly expensive? Ellis & Co tried to answer these questions.
Most affordable postcodes
The quiet residential area of Thamesmead is the most affordable area in London to buy a property. A home in the postcode area of SE28 has an average price of £275,194, almost £50,000 cheaper than the next most affordable area of Lower Edmonton.
The top 10 most affordable areas to buy a property in London
|Postcode||Areas covered||Average property price|
|E6||East Ham, Beckton||£350,124|
Southeast London is home to five of the top ten most affordable areas in London to buy a home, all coming in under £381,000.
This means, under the new 5 per cent deposit scheme, home buyers are able to get their foot on the property ladder in London with a deposit of as little as £13,759.
Most expensive areas
Eight of the top ten most expensive areas of London are located in the West and South West, with the average property price in these areas coming in at £1.56 million. Two postcodes in North West London have made the top ten, with St John’s Wood, Hampstead and Swiss Cottage having average property prices above £1 million.
The top 10 most expensive areas to buy a property in London
|London Postcode||Areas covered||Average property price|
|W1||Marylebone, Mayfair, Soho||£1,820,143|
|WC2||Covent Garden, Holborn, Strand||£1,667,871|
|W11||Holland Park, Notting Hill||£1,446,853|
|SW1||Belgravia, Pimlico, Westminster||£1,295,609|
|NW3||Hampstead, Swiss Cottage||£1,137,545|
|NW8||St John’s Wood||£1,112,247|
In addition to uncovering the most affordable and most expensive areas to buy in London, Ellis & Co looked at the best areas to invest for those looking for the best up and coming areas, tenant demand or the locations with the best schools.
Best up and coming area: Tottenham
Tottenham is one of the top ten most affordable areas in London to buy, with the average property price coming in at just over £400,000.
As well as new homes being built and Tottenham Hotspur FC’s impressive new stadium, the area is currently in the early stages of a 20-year regeneration plan.
Taking into account the changes in the area and plans for the future, it looks like it is set to be the best up and coming place for properties in London.
Best area to invest: Willesden Green
This area is hugely popular with renters making it a great place to invest in property, for those looking to be a landlord or expand their portfolio.
Demand for rental properties is high in this North West borough and rental income returns a yield of 3.6%. In addition, house prices have grown by 26 per cent in the area since April 2020, and this strong growth looks set to continue.
Whilst it might not be the cheapest area to buy a property, with the average property costing around £457,000, it is a highly sought-after area for young professional renters, so investors could see a healthy long-term return.
Best areas for schools: Harrow
Harrow could be the best place to buy a new home if having access to great schools is high on the priority list for families.
The area is home to 16 schools rated “Outstanding”, giving parents plenty to choose from, including both state and private options.
Some of the highly rated schools in the area include Belmont, Marlborough, and Whitmore High. The average property price in the area is £460,408, which is more affordable than many other areas of London.