London house prices:Bexley is revealed as London's most affordable borough to buy a home

The number of London's first-time buyers has risen 64 per cent since 2008. A new report compares annual wages and house prices to reveal where buyers can get more for their budget...

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Bexley, in south-east London, has been revealed as the most affordable area of the capital in which to buy a home.

A report released by property experts CBRE Residential compares the average wage and average house price for each London borough, giving first-time buyers a good idea of how far their annual income will stretch.

“While affordability for many first-time buyers in London may be stretched, there are still a number of locations that are continuing to attract these buyers with lower values and potential for growth," says Jennet Siebrits, head of residential research at CBRE.

"By measuring the average earnings coupled with local house prices, we anticipate that Bexley is set to further appeal to those looking for increased value for money."

The borough, which borders the Thames in travel Zone 6, is home to Sidcup, Crayford, Barnehurst and Thamesmead East. Rail services from Bexley station take about 36 minutes to reach Charing Cross, or London Cannon Street within 43 minutes.

Bexley was also recently revealed to be London's cheapest borough to rent a home in, with an average cost of £1,007 a month - less than half the average for the capital as a whole. It has also been reported to be the best place to bring up children, thanks to its open green spaces, top-performing grammar schools and a good range of local independent shops.

East London dominates the rest of the top 10 most affordable areas for first-time buyers, with most of these budget-friendly boroughs found on the fringes of the capital. However, Bexley's south-east London neighbours, Bromley and Greenwich, are the next most affordable.

“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."

Hillingdon, home to Heathrow airport, is the only west London borough to make the budget top 10. Listed as the eighth most affordable area, it is also the borough where average house prices are rising the fastest - up 14.4 per cent to just over £368,000 in the past year, according to the latest Land Registry figures.

"Last year 85 per cent of all the homes that sold for under £250,000 were in the capital’s outer boroughs,” says Hamptons’ Johnny Morris. “The insatiable demand for affordable homes in London has pushed up prices, however, with the number of properties for sale under the £250,000 mark down by a third in Bexley, Hillingdon, and Barking & Dagenham, in the last two years.” 

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