Would-be buyers are finding under-developed areas where prices are still relatively affordable — at least for now.
The hunt for affordability is driven by the news that the gap between earnings and house prices in the capital is at record levels.
The average sales price last year was 13.24 times average earnings (compared with 7.77 across England and Wales), and the typical first-time buyer deposit was £96,920, versus £25,761 nationally.
“By either measure, affordability is difficult,” says Savills analyst Lawrence Bowles.
This is sending buyers into untapped locations that traditionally have been overlooked by developers.
But it’s not just about finances. Prospective homeowners are also on the hunt for areas with a bit of character, where affordable can even meet cool. The trick is how to spot the right place.
Southall, Silvertown and Brent Cross South have been revealed in a new study as three of London’s untapped locations where average property prices are below the £500,000 mark. Clapton, Sydenhamand Leytonstone are also on the list.
The report by Cushman & Wakefield has analysed London’s 104 distinct districts between Zone 2 and the M25, categorising them from untapped and ripe for change to well established and built-up.
“Every single area has a different vibe,” says Cushman & Wakefield’s Oliver Christy.
“Yet there are some common factors that propel change more quickly: access to the transport network and existing park land are huge catalysts for investment.
"Pockets with space for creative industries, studios, workshops and co-working hubs are an indicator of where next will become arty and cool,” he adds.
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