Where you can buy in London:the most affordable boroughs for first-time clients to discover a home in

Of London’s 32 boroughs, 13 were found to be completely unaffordable to first-time potential buyers, with average house prices exceeding 4.5 times the price-to-income ratio.

London is less expensive for first-time buyers than other cities in the UK, including Oxford, York and Bristol, according to new information released today.

The analysis, by Post Office Money, discovered that with a median house price of £538,000, and the average first-time buyer home income of £79,800, almost one fifth of properties in London were “affordable” for first-time buyers.

By comparison, there were eight cities or places where no local specialists had average house prices affordable to local first-time potential buyers, including Warwick (£305,000), Guildford (£450,000), Oxford (£392,500), Brighton (£352,500), Cambridge (£427,500) and York (£237,500).

Although each one of these towns had a lower average house price than London, they also had significantly lower first-time buyer salaries, meaning fewer people could afford to buy an initial home.

The eight most unaffordable areas for first-time buyers in the united kingdom

Source: POSTOFFICE Money

Affordability was calculated as the percentage of smaller areas in each local expert where in fact the median house price was less than 4.5 times the average income of people who bought their first home there, so the study doesn’t solve affordability concerns for those priced from the ladder altogether.

The most affordable places for London first-time buyers

Of London’s 32 boroughs, 13 were found to be totally unaffordable to first-time potential buyers, with average house prices exceeding 4.5 times the price-to-income ratio.

These included traditionally expensive areas such as Kensington and Chelsea, where in fact the average house price is £1.425 million, and Westminster (£1.02 million), alongside newer property hotspots such as Hackney (£550,000), Waltham Forest (£449,000) and Lambeth (£525,000).

Only the most notable two boroughs had more than half of homes which were affordable for local first-time buyers: Barking and Dagenham, London’s cheapest borough, where homes cost £310,000 typically, making 95 per cent of these affordable; and Bexley, in south-east London, where the average home costs £350,000, making 54 % of these affordable.

All ten of the very most affordable boroughs were beyond your centre of London, with Havering (£360,000), Croydon (£380,000), and Newham (£413,500) completing the very best five for affordability.

“While we've seen house prices stagnate in London recently, properties can still seem to be particularly unaffordable for first-time clients,” said Ross Hunter of POSTOFFICE Money, as the business launched an internet property tool which customers can use to find affordable areas to buy a home in.

“While attractive central boroughs can seem impossible to save lots of for, if potential buyers are prepared to get creative and appearance further afield they can find some good bargains and even more value in conditions of property size and spec.”

The least expensive places in the UK 

In the united states, three areas were 100 % affordable for first-time purchasers, despite having average local first-time buyer incomes around half those of London’s.

With the average house price of £110,000, just over a fifth that of London’s, the Lancashire seaside town of Blackpool was completely affordable to first-time buyers with the average household income of £40,053.

Lincoln (£149,000) and Kingston upon Hull (£115,000) in East Yorkshire were both also 100 % affordable for first-time clients earning typically £40,913 and £38,665 respectively.

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