What Are The Most Affordable Places to Live in London?

London has a reputation for high property prices, and with average house prices now around £665,168, according to Rightmove, dated 19th December 2025, that reputation still holds true.

For many first-time buyers, that figure can feel entirely out of reach. In reality, though, property values across London vary massively by area.

There are still parts of the city where prices sit well below the London average.

These areas may not be the most central, but they continue to attract buyers looking for homes within the capital on a more realistic budget.

That doesn’t mean affordability is simple. Property type, deposit level and lender criteria all play a role, but the gap between perception and possibility is often wider than expected.

Below, we’ve looked at seven parts of London where prices tend to sit toward the lower end of the market.

If you’re buying for the first time, this gives you a clearer view of where your deposit might stretch further and what kinds of homes are most likely to come up.

1. Dagenham

Property Prices in Dagenham

Dagenham is often one of the first areas buyers explore when looking for a home in London under £400,000.

With average prices around £363,461, it stands out as one of the more accessible boroughs for those working with limited funds.

What Will a Deposit Look Like? 

A 5% deposit at this level comes to around £18,174. That increases to roughly £36,346 for a 10% deposit, or £54,519 at 15%. 

Types of Homes You’ll Find 

The majority of homes in Dagenham are 1930s and 1950s terraces and semis, originally built as affordable family housing.

Many are freehold, constructed using standard materials, and appeal to buyers looking for more space than a flat without moving too far out.

Some properties have been extended or modernised, pushing prices slightly higher, while others offer more of a blank canvas. There are ex-local authority houses and flats in the area as well.

These tend to be more affordable but may require more careful assessment during the mortgage process, depending on the building and condition.

Thinking About Buying in Dagenham? 

We can help you understand how different property types in this part of London are viewed by lenders and whether your deposit is likely to open up a wider choice of homes.

2. Barking

Property Prices in Barking

Barking has become increasingly popular in recent years thanks to its redevelopment schemes and relative affordability.

Average property prices currently sit at £377,131, keeping it within reach for many buyers compared with other parts of the city.

What Will a Deposit Look Like? 

At this level, a 5% deposit would be about £18,857, with 10% reaching £37,713, and 15% sitting around £56,570.

Type of Homes You’ll Find 

Housing in Barking is diverse. You’ll find Victorian terraces, low-rise ex-local authority properties, and new-build flats, especially closer to regeneration zones.

Flats are more common in this part of London than in Dagenham, and some will be leasehold with management fees and ground rent conditions that need to be considered when applying for a mortgage.

Houses are still available in quieter residential streets, often sitting just under or just above the local average, depending on layout, garden space and condition.

Thinking About Buying in Barking? 

We’ll help you navigate how leasehold properties and local development trends might affect your mortgage application, and what to look for in terms of paperwork and lender preferences.

3. Croydon

Property Prices in Croydon

With average house prices around £408,697, Croydon is more expensive than Barking and Dagenham, but still lower than many other London boroughs.

The area attracts a mix of first-time buyers and home movers looking for more space while staying within commuting distance of the city.

What Will a Deposit Look Like? 

A 5% deposit comes to £20,435, with a 10% deposit at £40,870, and 15% reaching £61,305.

Type of Homes You’ll Find 

Croydon has a broad mix of housing, from early 20th-century terraces and 1930s semis to purpose-built flats and high-rise apartments.

Buyers can expect significant variety in condition, layout and pricing depending on the part of Croydon they’re looking in.

Some flats are leasehold with longer service charge agreements, while houses tend to be freehold and more straightforward from a mortgage perspective.

Areas on the edge of the borough may offer slightly more space for the same price, although commuting and transport preferences still influence buyer choices.

Thinking About Buying in Croydon?

We can show you how different property types across Croydon fit into lender criteria and help you understand what kind of deposit gives you the best position when offers start to go in.

4. Newham

Property Prices in Newham

With average house prices around £466,646, Newham sits at the higher end of this affordability list, but it still offers one of the more realistic entry points for buyers determined to remain within London.

Price variation is common, with some streets seeing significant development and others remaining more traditional.

What Will a Deposit Look Like? 

A 5% deposit at this level works out at roughly £23,333. At 10%, that figure rises to £46,665, while 15% would bring the total to around £69,997.

Type of Homes You’ll find

Newham offers a mix of older and newer housing, often side by side.

Victorian and Edwardian terraces are still common, especially in long-established residential areas, while newer flats dominate around regenerated zones.

Flats are frequently leasehold, with varying terms, charges and restrictions. Houses are typically freehold but can come with a wide range of conditions, depending on their age or any previous conversions.

Buyers may need to account for differences in construction, lease length or shared ownership elements, all of which could affect mortgage eligibility.

Thinking About Buying in Newham? 

We’ll walk you through the property landscape and explain how your deposit, income and chosen home type will influence the lenders available to you.

5. Havering

Property Prices in Havering

Average property prices in Havering are around £476,779, placing it just below the £500,000 mark.

It remains popular with buyers looking for more space and a traditional residential setting without venturing too far from London’s core.

What Will a Deposit Look Like? 

A 5% deposit at this price point would be approximately £23,834, increasing to £47,678 at 10%, and £71,517 with 15%.

Type of Homes You’ll find 

Havering is home to a wide selection of three-bed semis, post-war houses and modest detached homes.

These properties are usually freehold, built with traditional methods, and generally straightforward to mortgage.

There are also some purpose-built flats, usually with longer leaseholds, that suit buyers looking for something lower-maintenance.

Home condition can vary depending on age and previous ownership, and some properties may sit in price bands just above the area average.

Thinking About Buying in Havering? 

We can help you look at how your deposit size fits with the types of homes commonly available here and what to expect from the mortgage process based on your choice of property.

6. Sutton

Property Prices in Sutton

Sutton continues to offer some of the best value for buyers wanting a balance between city life and suburban calm.

Average house prices currently stand at around £491,645, making it one of the more spacious options on this list.

What Will a Deposit Look Like? 

At this level, a 5% deposit would be around £24,583. Buyers aiming for 10% would need £49,165, and 15% would bring the total to roughly £73,746.

Type of Homes You’ll find 

Family houses dominate in Sutton. Semis and detached homes from the mid-to-late 20th century are common, many featuring driveways and gardens.

Flats and maisonettes are also found throughout the area, some of which form part of older conversions.

The condition of homes is generally good, though renovation projects do occasionally crop up and may influence lending options.

Freehold properties tend to be the most straightforward, while leasehold flats may include extra costs or terms that need closer review.

Thinking About Buying in Sutton? 

We’ll help you compare the different options available in Sutton and explain how lenders assess properties based on size, layout, and condition.

7. Bexley

Property Prices in Bexley

At £566,512, Bexley has the highest average price of all areas listed here.

It appeals to buyers who are looking to put down stronger roots, often opting for larger homes while staying inside the London boundary.

What Will a Deposit Look Like? 

A 5% deposit would total approximately £28,326, with 10% reaching £56,651, and 15% taking you to £84,977.

Type of Homes You’ll find 

Bexley is made up of quiet residential areas with a strong supply of family-sized houses. Three-bed semis and detached homes are the norm, with good interior space and outdoor areas.

Most properties are freehold and built with standard materials. While newer estates are priced higher, older homes with potential to modernise are still available under the average, depending on location.

The market tends to move quickly, especially where transport links and schools are a factor.

Thinking About Buying in Bexley? 

We’ll help you understand how your borrowing potential fits with what’s available in Bexley, and explain how the mortgage process might differ depending on whether you’re buying a modern home or something more traditional.

Looking Beyond the Averages

London’s property market is anything but uniform. While the average house price across the city sits above £665,000, plenty of buyers are securing homes for far less.

The key is knowing where to look and understanding how your own deposit and income shape what’s available to you.

These seven areas offer a starting point for buyers working with tighter budgets, but affordability will always depend on more than just the listed price.

Factors like property type, condition, ownership structure and local demand can all influence which mortgage options are open to you.

As a mortgage broker in London, we work with buyers across the city to identify how much they can borrow, what kind of deposit gives them flexibility, and how lender criteria might apply to the homes they’re targeting.

If you’re beginning to explore what buying in London might look like, we’ll help you figure out what’s realistic and what your next steps should be.

Date Last Edited: December 19, 2025