Top 7 Cheapest Places To Buy A House Or Flat In London 2024

The London property market might seem like a bold choice for first-time investors, or those with a smaller budget, but there are plenty of hidden property gems in London too. Whether you are new to investing in property or looking for some hot tips for investing in London, this blog has got you covered. Here are my picks for the top seven cheapest places to buy a house or flat in London.

Table of Contents

Erith
Thamesmead
Barking & Dagenham
Plumstead
Croydon
Deptford
Sutton

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Erith

Located a little further out from central London, Erith offers a surprisingly easy commute to central London, plus the famous Bluewater shopping centre, as well as access to the Rainham salt marshes and other rural spaces. The local council is focusing regeneration efforts on the town centre and hopes to make it more accessible as well as attract more retailers. Erith was heavily targeted in WWII, triggering a lot of regeneration in the area which continues today with new housing developments and the Greater Erith Regeneration Programme. Zoopla reports that flats sell for an average of £200,602 in Erith, semi-detached houses go for around £418,123 and detached houses sell for about £447,250.

Average rental yield in Erith: 6.62%

Average property price in Erith: £341,978

Thamesmead

An often overlooked part of London, Thamesead is a relatively quiet residential area whose few claims to fame include being featured in A Clockwork Orange. Now a far cry from its imposing Brutalist roots, Thamesmead has been extensively regenerated and could be the next property investment hotspot in London. Sandwiched between the Thames and the South London escarpment, Thamesmead is lacking in transport links, although there are plans to extend the Docklands Light Rail into Thamesmead, opening up this borough to even more development. Thamesmead has been heavily regenerated by London housing association Peabody, who have already cleaned up Southmere Lake, repaired local buildings and invested half a million pounds into building new homes in the area. According to Zoopla, a detached house in Thamesmead sells for an average of £558,143, and flats start at just £140,000.

Average rental yield in Thamesmead: 6.10%

Average property price in Thamesmead: £345,254

Barking & Dagenham

This borough in east London has been regenerated from its industrial roots and boasts a vibrant, multicultural community. Regeneration is ongoing, from the recently developed Barking Riverside area to the Barking Town Centre Regeneration Strategy which intends to deliver 10,000 new homes within 10 years. Planning permission for London’s largest film studio was approved in 2020, which could bring 1200 jobs to the area. One of the best-connected boroughs of London, Barking & Dagenham has good road and rail links – you can get to Central London in 30 minutes and easily access the M25 via the Thames Gateway. Zoopla reports the average sold price for a detached house in Barking & Dagenham in the last 12 months was £451,250, although current listings show flats in the area on sale for £150,000 and houses for as little as £249,000.

Average rental yield in Barking & Dagenham: 5.6%

Average property price in Barking & Dagenham: £361,395

Plumstead

Located in Southeast London, the hilly suburb of Plumstead is tipped to become the place to invest in London. Property prices have risen sharply over the last 5 years, but Plumstead remains very affordable when compared with the rest of London. Plumstead is a favourite of young families due to its good schools and abundance of green open spaces. Connected to the rest of London via bus and rail, you can get to central London within 15 minutes. Plumstead is also undergoing extensive regeneration with plans for new schools, offices, shops and more in the pipeline. Curiously, detached houses seem to sell for less (£385,000) than semi-detached (£429,846) or terraced houses (£421,135) in Plumstead, perhaps due to the relative lack of detached properties in this area, or the need for refurbishment. Flats start at £200,000.

Average rental yield in Plumstead: 4.8%

Average property price in Plumstead: £392,153

Croydon

House prices dropped in Croydon by 3.4% in 2023, the biggest house price fall of any London borough. Croydon has undergone massive regeneration and can look forward to continuous development, making it an ideal choice for property investors. Croydon has a good blend of green spaces and urban living with excellent transport links all over central London and beyond. Some areas of South Croydon are almost verging on rural, due to its proximity to Surrey. A house in Croydon sold for an average of £415,245 whereas a flat sold at around £276,926 over the last 12 months. Prices on Zoopla show some flats on sale for as low as £125,000.

Average rental yield in Croydon: 5.7%

Average property price in Croydon: £419,806

Deptford

Nestled on the banks of the Thames and next to Greenwich, Deptford has undergone much regeneration and repurposing since it housed Henry VIII’s royal dockyard. A favourite for young professionals and creative types, Deptford has gained a hip reputation and boasts microbreweries, independent shops, and trendy bars and restaurants. Located in Zone 2, and served by the DLR, you can get to central London in about 10 minutes. Deptford offers a mix of purpose-built apartment blocks and converted industrial buildings like Deptford Foundry as well as Victorian terraces. Flats in Deptford start at £200,000 and houses at £425,000.

Average rental yield in Deptford: 5.24%

Average property price in Deptford: £446,344

Sutton

Sutton is a desirable area for young families due to the low crime rate and excellent local schools, as well as being close to Central London for commuters. Sutton offers a combination of 1920s and 30s-built semi-detached homes, handsome Edwardian period properties and new houses and flats. Sutton offers plenty of green spaces too such as Oak Park and Beddington Park. According to Zoopla, a terraced house in Sutton sold for an average of £487,135, a detached home went for £934,566 and average flat sales were at £286,455 in the last 12 months. A search of flats for sale in Sutton shows a good amount on offer for £160,000 – £200,000.

Average rental yield in Sutton: 4.4%

Average property price in Sutton: £467,632