The latest house price figures reveal that the average London home now comes with a £475,000 price-tag.
However, homes on the capital’s fringes are significantly cheaper. Average prices in the cheapest borough, Barking and Dagenham, stand at £277,000, according to the latest Land Registry figures.
A quick search on Rightmove reveals more optimistic news for those hoping to get on the property ladder - asking prices for one-bedroom flats in some parts of the east London borough start from £140,000 and two-bedroom flats from £170,000.
High street banks, including Natwest and Santander, are now offering 95 per cent mortgages, which reduces the minimum deposit to £7,000. A couple looking to buy together could aim to save this in two years, if each put aside £146 a month.
For a property valued at £140,000, buyers will also need to have £300 saved for stamp duty and at least £2,000 for legal fees.
RISING DEMAND IN OUTER LONDON
The cheapest areas of the capital are traditionally not the most sought after. However, following years of double-digit house price rises and wages not keeping pace, increasingly stretched Londoners are looking further afield.
Similar interest is being seen in Barking and Dagenham and Havering.
Havering is home to some of the fastest-rising prices in the capital - up 11.8 per cent to £362,000 over the past year - but it is the fourth cheapest area to buy in London.
Property in Bexley sells for an average of £333,000, but again, homes in the south-east borough can be found for cheaper. One-bedroom flats are on the market for £110,000 and two-bedroom flats from £150,000.
Enfield in north London and Hounslow in south-west London also just make it on to the top 10 list of cheapest areas in the capital, with house prices of just under £400,000, placing them in eighth and ninth positions, respectively.
In Enfield, £180,000 is the minimum price for which you'll find a one-bedroom flat, with two-bedroom flats starting from £230,000.
Hounslow is slightly cheaper, with one-bedroom homes having asking prices of £170,000 and two-bedroom flats beginning at just under £200,000.
WHERE TO START YOUR SEARCH
When looking for a home in an area you’re not familiar with, it pays to do search for online area guides, with blogs and local forums also a good way to get an idea of a place from the people who live there.
“It also pays to spend some time in the area, and don’t just view and leave,” says eMoov founder Russell Quirk. “Take a walk or drive around and try visiting during key times of the day, such as rush hour, to get a genuine impression of how busy the roads or other transport links are.”
In the gallery above, we reveal the 10 cheapest London areas to buy - and find examples of two-bedroom homes for sale in each area.