Can First-Time Buyers Afford London Property Prices?

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Can First-Time Buyers Afford London Property Prices?
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As a first-time buyer, there’s a strong chance you don’t have a lot of savings to put towards a deposit. Properties all over the UK are already expensive, but it’s a completely different story when it comes to London.

According to recent data, homes in London are 72% higher than properties anywhere else in the United Kingdom, so unless you’re a high earner, buying your first home in London might seem like a mission impossible. But is it?

In this article, we’re going to go over the average property prices in London, what the most affordable areas in London are, and review any schemes currently available to first-time buyers.

Average Property Prices in London for Each Type of Property

London is home to some of the world’s most expensive streets in the world. If you look for a house in the area of Phillimore Gardens, the average house will set you back £23.8 million, which is a whopping 83 times the price of the average property in the UK.

As a result of that, the price of the average home in London, in general, is over 70% higher than the average home in the UK. Or when translated into numbers, the average property in London is £543,000 compared to the UK average of £315,119, a difference of £227,980.

But what do the numbers look like depending on the different types of properties? At the end of the day, why should you care what a house costs in Kensington if you’re looking for a small apartment in Zone 2 or 3 in London? In the section below, we’ll go over how much you can expect to pay on average for the different types of properties in the English capital.

Flats & Apartments

The average flat in London costs around £555,000. However, the price you will pay really depends on the size of the property and the area where it is located. Apartments in Kensington and Chelsea are typically around £1.1 million, while apartments in Barking and Dagenham can cost you a mere £249,000.

It’s worth remembering that property prices in London hold value, and chances are that they will only get more expensive. So if you buy a flat and decide to move on later, rest assured that you can sell your flat fast pretty easily as the demand is always high.

Detached & Semi-Detached Homes

The average detached house in London will set you back around £957,000. This is because land in London is extremely precious, and every square meter costs thousands. When it comes to semi-detached homes, the average price of those is around £620,000. Again, you can pay much more or much less depending on the size of the property and its location.

Terraced Houses

Terraced houses are the cheapest form of property you can buy in London. The average cost of one is currently around £532,000. The more central you go, the more expensive, and the more outside of London you look, the cheaper you can find terraced homes.

And now that you know what you can expect to pay on average for each type of property most commonly found in London, let’s take a look at what the most affordable areas are for first-time buyers keen to stay in England’s capital.

Most Affordable Areas for First-Time Buyers in London

Property prices in London might seem unreal, especially to first-time buyers looking to get on the property ladder. However, there are plenty of great areas all over the city where you don’t have to spend a million pounds to get good value for your money. Below, we’ll take a look at some of London’s most affordable areas for first-time buyers.

Barking and Dagenham

The borough of Barking and Dagenham is one of the most affordable areas in London. The average price of a one-bedroom flat is just shy of £170,000, making it the ideal location for first-time buyers that don’t have large financial resources.


Located in the southern part of London, Croydon is a popular choice for first-time buyers thanks to its many properties that average at around £210,000. The cheapest type of property you can buy in the area are terrace houses, but if you have a bit more lenient budget, you could go for a semi or even a fully detached house.


Lewisham is one of London’s boroughs best known for its parks, green spaces, and excellent transport links that can easily and quickly take you to any part of the English capital. Property prices in Lewisham are a bit more expensive but still way below the average for London. You can get a one-bedroom apartment in the area for around £250,000.


Newham is one of London’s most diverse and vibrant boroughs. Properties in the area offer great value for money. You can purchase your first one-bedroom apartment here for around £200,000.


If you want to live in the North-side of London, Enfield is a fantastic and affordable location to start calling home. A one-bedroom apartment in the area will set you back around £240,000. Houses and semi-detached homes will cost you more, they won’t set you back an astronomical number compared to other parts of London.

Waltham Forest

Located in the North-East side of London, Waltham is another affordable location for first-time property buyers. The average price of a one-bed apartment in Waltham Forest will set you back around £250,000. Houses will set you back around £400,000. Again, it depends on the size of the property you’d be looking at getting.

Schemes Available to First-Time Buyers in London

The British government is currently running a scheme where first-time buyers can purchase a property for 30% to 50% less than its market value. To be eligible, you must be:

  • 18 or older
  • A first-time buyer
  • Are able to get a mortgage for at least half the price of the home
  • Buying the home as part of a household where total income is no more than £90,000

It’s also worth checking with the local council on additional eligibility conditions that may be required. Some councils prioritise giving a First Homes discount to

  • People living on lower incomes
  • People who have lived in the area the longest
  • Essential workers

First-Time Buyers in London

Property prices in London are over 70% higher than the average property anywhere else in the United Kingdom. As a result, first-time buyers can have a very difficult time finding a property that they can afford. Fortunately, there are plenty of affordable areas in and around London that have properties offering buyers great value for money.

If you’re looking to spend as little as possible, consider searching in and around Barking and Dagenham. If you have a bit more money to spend, Waltham Forest and Lewisham are two other great areas to consider. If you have a property you’d like to sell quickly in London, We Buy Any Home can help.

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