London’s cheapest places to buy a house as property prices drop £30,000

House prices have continued to drop in London as the post-COVID property boom gradually slows. Analysis from Zoopla revealed in December London prices fell by 1.5 per cent, with the city’s outer boroughs particularly experiencing a decline in the value of property.

Zoopla said this was because prices in these areas went up quicker over the pandemic than inner London, as the shift to working from home or hybrid working led to areas outside the city centre becoming more popular.

The average house price for the whole of London is currently sitting at £536,000 according to Zoopla, based on December’s average. Property values in London’s cheapest borough – Barking and Dagenham – are almost £200,000 cheaper than this as it remains the cheapest area to live in.

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Here the average home will set you back £340,000, dropping from £354,000 recorded in December 2022. Although the East London borough has recorded a considerable drop in house prices, other areas have recorded a bigger total drop in value.

In Bexley – London’s second cheapest borough – the average property price has dropped from £408,000 to £378,000, a reduction of more than seven per cent. The city’s third cheapest borough to live in is Croydon with the average home setting you back £403,000.

This also represents a considerable drop of six per cent. The rest of London’s cheapest boroughs are also in Outer London besides Greenwich and Tower Hamlets.

Newham was the only area in top 10 cheapest to record an increase in house prices with a rise of one per cent. Here the average home costs £424,000 on average.

At the other end of the spectrum Kensington and Chelsea remains London’s most expensive borough with the average property value of £1.25m. This is followed by Westminster at £878,000 and Camden at £873,000.

Although the latter borough has seen house prices increase by two per cent, the former two have also recorded a considerable drop in property values with decreases of 14 per cent and 16 per cent respectively.

House prices have dropped by £30k in Bexley
House prices have dropped by £30k in Bexley
(Image: Andrew Aitchison / In pictures via Getty Images)

Here is a full breakdown of London’s cheapest boroughs

Barking and Dagenham

Average house price in December 2023: £340,485

Average house price in December 2022: £354,490

Percentage difference: 4% decrease

Bexley

Average house price in December 2023: £377,926

Average house price in December 2022: £407,782

Percentage difference: 7.3% decrease

Croydon

Average house price in December 2023: £402,505

Average house price in December 2022: £428,626

Percentage difference: 6.1% decrease

Havering

Average house price in December 2023: £405,801

Average house price in December 2022: £435,837

Percentage difference: 6.9% decrease

Newham

Average house price in December 2023: £424,253

Average house price in December 2022: £420,084

Percentage difference: 1% increase

Enfield

Average house price in December 2023: £431,877

Average house price in December 2022: £457,784

Percentage difference: 5.7% decrease

Greenwich

Average house price in December 2023: £433,411

Average house price in December 2022: £434,547

Percentage difference: 0.3% decrease

Hillingdon

Average house price in December 2023: £435,396

Average house price in December 2022: £465,519

Percentage difference: 6.5% decrease

Sutton

Average house price in December 2023: £436,261

Average house price in December 2022: £437,982

Percentage difference: 0.4% decrease

Hounslow

Average house price in December 2023: £448,840

Average house price in December 2022: £449,272

Percentage difference: 0.1% decrease

Tower Hamlets

Average house price in December 2023: £453,376

Average house price in December 2022: £484,849

Percentage difference: 6.5% decrease

Here is a full breakdown of London’s most expensive boroughs

Kensington and Chelsea

Average house price in December 2023: £1,125,353

Average house price in December 2022: £1,304,255

Percentage difference: 13.7% decrease

City of Westminster

Average house price in December 2023: £877,733

Average house price in December 2022: £1,046,255

Percentage difference: 16.1% decrease

Camden

Average house price in December 2023: £872,777

Average house price in December 2022: £857,973

Percentage difference: 1.7% increase

City of London

Average house price in December 2023: £802,168

Average house price in December 2022: £975,289

Percentage difference: 17.8% decrease

Richmond upon Thames

Average house price in December 2023: £757,676

Average house price in December 2022: £735,740

Percentage difference: 3% increase

Islington

Average house price in December 2023: £702,159

Average house price in December 2022: £701,328

Percentage difference: 0.1% increase

Hammersmith and Fulham

Average house price in December 2023: £664,767

Average house price in December 2022: £743,420

Percentage difference: 10.6% decrease

Hackney

Average house price in December 2023: £621,127

Average house price in December 2022: £618,843

Percentage difference: 0.4% increase

Wandsworth

Average house price in December 2023: £607,259

Average house price in December 2022: £631,952

Percentage difference: 3.9% decrease

Barnet

Average house price in December 2023: £577,548

Average house price in December 2022: £593,114

Percentage difference: 2.6% decrease

Haringey

Average house price in December 2023: £573,740

Average house price in December 2022: £603,149

Percentage difference: 4.9% decrease

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