It is a well-known fact that price is of the utmost importance when searching for a new property to buy or rent. However, as the capital, London has expensive living standards that influence the price level significantly. Therefore, in most cases, all property on the market comes with a tall price tag.
If you are eager to find the best yet affordable new builds in London, then you should learn more about the boroughs where houses are of the best value for money.
The State of the London Real Estate Market in 2021
Without a doubt, the coronavirus pandemic leading to lockdowns caused many gradual economic problems that likewise affected the real estate market. As reported by The Guardian, at the end of 2020, there was a dramatic price increase. Property price level grew almost up to a six-year high.
Nevertheless, experts forecast a notable slowdown within the first months of 2021. So, although the market remains unstable, it is an appropriate time for a house purchase.
What Are the Four Most Affordable London Boroughs?
The easiest way to get the best offer in the preferred borough is, of course, to consult a real estate specialist. But there are also several reliable reviews available online. For instance, the Evening Standard named the following worth considering boroughs in London.
Barking & Dagenham
As in one of the cheapest areas in London, the house prices average at about £301,478. The property prices in the borough have increased by 40% since 2015. Two locations, Barking Riverside and Barking town centre are worth considering due to continuous development.
The area is located on the eastern side and famous for its power station that produces over 30% of energy. Besides, there is also a wetland and a new environmental ecology centre. That fact, along with affordable prices, makes the borough very attractive for potential buyers.
Another affordable London borough that offers houses at an average price of £370,920. Within the last five years, the prices in the area grew by 34%. But there is a wide choice of different options. For example, you can find a new-built studio at around £200,000.
One of the area’s distinct advantages is the Crossrail construction that will end in 2022. It is appealing for many buyers because it will enable high-speed trains to go to central London at 5-minute intervals. Therefore, many people will be able to use this new convenient means of transportation.
It is well-known as a young yet fast growing location with an average house price of £373,415. Property prices in Newham grew by 32% within the last five years. The borough attracts potential buyers due to several benefits.
Owing to the Olympic Games taking place in 2012, the area has developed impressive infrastructure. Many people are eager to visit those places or even move down there. Also, there is a famous Westfield trade centre that likewise attracts a lot of visitors.
Furthermore, the area is well-known as a big developing cultural centre formed by different institutions, e.g., V&A Museum, Sadler’s Wells Theatre, London College of Fashion, and others.
Experts forecast Neham’s rapid growth that will lead to a house price increase. Therefore, it might be an excellent chance to buy a house at an affordable price that will become a beneficial investment in the future.
The cheapest borough, according to the Express, is Woolwich, located in the south-east of London. The average house selling price in the area is around £321,374.
People living in the area will also benefit from the launch of the Crossrail in 2022. However, the reason Woolrich is one of the cheapest boroughs is the slow pace of its regeneration. In most cases, young specialists prefer to purchase houses here. They seek a good value for money ratio as well as a convenient commute.
What about the Help to Buy Purchases?
The governmental support program named Help to Buy scheme offers an interest-free loan for new builds’ purchases. For reference, based on the MyLondon news article as of 2013-2019, the list of the most popular boroughs among people using the Help to Buy scheme is as follows:
- 1765 people purchased a property in Barnet
- 1596 people preferred buying a house in Tower Hamlets
- 1468 people decided to move to Croydon
- 1441 people chose Greenwich as a place to live in
In conclusion, it is significant to note that despite a complicated economic situation and numerous restrictions related to a pandemic, it is still an appropriate time to search for a new house. Moreover, it is possible to find affordable house prices around London.
The provided list of the potentially attractive boroughs enables you to consider the largest possible number of options. That will help you find a house that suits you best.