East London is the top choice for the capital's first-time home buyers

East London continues to be first choice among young buyers, with 10,000 starter homes bought in this part of the capital in the past year, according to a new report.
London’s first-time buyer market has grown 10 per cent in the past year, despite property prices rising 14 per cent over the same period.

East London continues to be the top choice of area among young buyers, with 10,000 starter homes bought in this part of the capital in the past year, according to new researc by Hamptons International.

The good transport links at Stratford are enticing this group to seek out those few pockets of east London that are still affordable and offer an increasing number of new starter homes within easy reach of the centre. 

Last year 3,000 new homes were built in Newham and Tower Hamlets, more than the whole of the rest of east London combined. 

In Newham, Canning Town is a particular new homes hotspot with developments such as East City Point offering 649 one- and two-bedroom flats and Rathbone Market bringing 650 new homes.

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Homes in Newham recorded a 17.2 per cent price rise over the past year, taking the average cost of a property to £295,306. Average property prices in Tower Hamlets are almost £200,000 higher, setting buyers back £492,585, while first-time buyers are almost priced out of Hackney, where the average cost of buying has reached £616,004, according to the most recent Land Registry report.

Demand in east London looks set to continue strongly, especially in Stratford, with a new cultural quarter planned at the Olympic Park and both the Financial Conduct Authority and Transport for London moving to the area, bringing new jobs with them. 

In January next year, the Tube and mainline rail stations at Stratford, Stratford International and Stratford High Street will all change from Travel Zone 3 to Zone 2/3, paving the way for cheaper local transport links.

Another huge draw is the arrival of Crossrail, the capital’s much-anticipated high-speed rail network, due to launch in 2018. “The improved services will likely see more activity further along the line from Stratford, particularly areas like Forest Gate which will see cuts to journey times to central London,” says Johnny Morris, head of research at Hamptons International.

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