London house prices:Barking and Dagenham is still the cheapest borough to buy despite record price growth

London's outer boroughs are rising in popularity, with would-be home buyers seeking out more affordable districts.

The borough of Barking and Dagenham, on the eastern fringes of the capital, has recorded the highest property price growth across London during the past 12 months.

According to the latest Land Registry figures, the average cost of buying a home in London has reached £514,097. Yet annual growth of 15.3 per cent has taken the average cost of buying a home in Barking, Becontree and Dagenham to £309,760, making this the cheapest London borough for buyers to get on the first rung of the property ladder.

“Outer London will continue to be the best bet for those with smaller budgets over the next few years," predicts Johnny Morris, head of research at estate agent Hamptons International.

"With outer London firmly on the radar of most developers, the level of new house building has seen some outer boroughs begin to lose their suburban label. By the time Crossrail opens in 2018, cutting many journey times in half, the line between central London and the suburbs will be more blurred than ever before."

INTERACTIVE MAP: THE AVERAGE COST OF BUYING IN EVERY LONDON BOROUGH
Land Registry December 2015

 

While Barking and Dagenham may be the most affordable area in London, last year the borough was also deemed the most miserable place to set up home in the UK, scoring lowest in five of Rightmove’s 12 criteria used to judge Britain’s happiest location.

There's plenty of good news for local home owners though, with a master plan already under way to create tens of thousands of new homes and jobs over the next 15 years. Transport for London has also announced proposals for a new tunnel to be part of an Overground extension to Barking Riverside. 

In west London, the Crossrail effect has also helped drive up prices in Hillingdon, with the borough set to gain two stations along the high-speed rail route, significantly cutting journey times into the centre of London from West Drayton and Hayes & Harlington.

The south-east London borough of Bexley (average house price £313,986), and Newham (£325,298) in the east, are the next most affordable areas for home hunters to have on their radar.

Kensington and Chelsea remains London's most expensive borough, with average prices reaching close to £1.4 million.


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