Buying or renting in London remains notoriously expensive, which is why CNBC is examining the currently cheapest areas of the UK capital.
Data collected by real estate agent Knight Frank, shared with CNBC, shows that in the second quarter of 2021, Barking and Dagenham was generally the cheapest borough to buy a property.
The overall average house price was £ 304,626 ($ 417,971) in Barking and Dagenham, costing an average of £ 387,196 to buy a three-bedroom house in the borough and £ 256,033 to buy an apartment two bedroom apartment in the area.
Bexley turned out to be the cheapest borough in London to rent, with an overall monthly rent averaging £ 1,191. It typically costs £ 1,523 to rent a three-bedroom house and £ 1,205 to rent a two-bedroom apartment in Bexley.
Here is an overview of the 10 cheapest boroughs to live in London.
The cheapest areas in London to buy and rent a house
Knight Frank’s data was based on his own research, as well as figures he collected from the UK property search portal OnTheMarket.
Despite the pandemic-induced real estate trends, Knight Frank, London Head of Residential Research Tom Bill, told CNBC in a phone call that “the heat map of London house prices still looks like what it is. it was before the pandemic, “these outlying areas of the city still being the cheapest to rent and buy property.
London’s housing market activity, like that in many major cities around the world, has suffered from public health restrictions linked to coronaviruses, with people being urged to stay at home.
As restrictions relaxed, giving people more freedom to return home, there has been a slight increase in Londoners looking to relocate to rural areas in search of more space as the trend to work from home seemed to continue in the longer term.
Knight Frank’s Bill noted this trend, noting that areas like Wimbledon, Dulwich and Richmond had seen one of the strongest increases in house prices in the past 12 months, as people sought more space and of vegetation.
Meanwhile, Bill said rent has fallen from 14% to 15% in parts of central London, with fewer international students and foreign professionals coming to live in the city due to border restrictions. He thought that this drop in prices might have brought some people closer to the city.
However, Bill said the price drop is “bottoming out now” and has “reached that inflection point where it is picking up.”
London boroughs “good value for money”
British estate agents Foxtons have found Newham to be the cheapest borough in London to buy a property, with an average asking price of £ 424,350. Foxtons found Sutton to be the cheapest borough to rent a property, at an average of £ 331 per month.
However, Foxtons’ data was based on the areas in which it has substantial sales and rentals.
Purplebricks, an online real estate agent, also said Barking was an area that offered “value for money” in terms of real estate prices.
In addition, they noted that Bexley, Bromley, Croydon, Havering, Hounslow, Lewisham, Newham and Sutton were other areas of London with cheaper housing prices.
James Terry, director of divisional sales at Purplebricks, highlighted two boroughs in particular – Newham and Bromley.
Terry told CNBC by email that Newham was “very promising” with many new bars and restaurants opening in the area.
Meanwhile, “Bromley has a unique feel and doesn’t look like a normal London borough,” he said, describing the area as “very leafy and family-oriented”.
“People can move away from a central London apartment away from the hustle and bustle and buy a bigger house with room to grow while being able to get into London in twenty minutes,” Terry added.