From Finsbury Park to Whitechapel: London's rising Zone 2 homes hotspots to watch

Fast-improving zone 2 districts ringing central London’s most expensive areas are riding high as home-buyers search out cheaper, well-connected postcodes.
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Fast-improving Zone 2 districts ringing central London’s most expensive areas are riding high as home buyers seek cheaper yet well-connected postcodes. Developers are also stepping in to create better inner-city neighbourhoods. Leading estate agents predict Zone 2 properties will record the biggest price gains over the next five years.

Zone 2 starts at the congestion charge boundary and embraces 126 Tube stations, stretching to Acton in the west, Archway in the north, Poplar in the east and Brixton in the south.



While a Zone 1 home typically costs £1.5 million, Zone 2 homes are priced at £723,000 on average. But many  Zone 2 areas have average prices that are much lower — between £300,000 and £400,000.

“Some areas are significantly under-valued given the quick commute to the centre — they are an easy commute with a lot of price growth,” says Jennet Siebrits, head of residential research at property consultant CBRE.

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Click on a station to get the average property price and rent for the local area plus the journey time to the West End (Oxford Circus) and City (Liverpool Street).
The map can also be viewed HERE

Best for transport: New cross
New Cross in south-east London is the cheapest Zone 2 address, with an average price of £317,000. This is despite the area’s excellent rail connections — it takes six minutes to London Bridge, an Overground service, plus one stop to the Jubilee line interchange at  Canada Water.

Once a Victorian village at the end of the tram line out of central London, the legacy of period architecture remains. There is a fire station, a town hall, landmark pubs and the splendid home of Hatcham Liberal Club, which has now been converted into flats.

Goldsmiths College, where Damien Hirst studied fine art, provides a student scene, while the cosmopolitan mix is wider than ever. Young singles and couples are moving in and families are putting down roots. New Cross has swathes of affordable Victorian housing, including Telegraph Hill conservation area, perched at the top of a slope with wide tree-lined roads, great views, two parks and Haberdashers’ Aske’s Boys’ School, one of the most over-subscribed in London.

Young at heart: New Cross has a youthful, student vibe thanks to Goldsmiths College, where Damien Hirst studied fine art

New Cross resident Louise Eversley, a tax specialist working in the City,  says the area has taken a long time to change and has reached the stage where people want to live there, rather than needing to because it is cheap. 

“It’s still scruffy, but it is smarten- ing up and attracting cross-river movers from the north bank,” she adds. Spark, in New Cross Road, has flats priced from £290,000, with shared-ownership options available. Call Hyde New Homes on 0845 606 1221.

Not all good-value Zone 2 areas are quite as gritty. Some, such as Kennington — close to the river in Lambeth and where the average property price is £500,285 — have garden squares. Check out West Square and the enclave behind the Imperial War Museum.

From £795,000: three-bedroom contemporary apartments with stunning views and winter gardens at The City Mills in Bethnal Green, which tops property group CBRE's list of best value-for-money areas. Call 0844 406 9000

St Agnes Place is a new addition  to the area’s compact network of  Georgian and Victorian terraces. The 43-home scheme opposite Kennington Park has period-style four-storey townhouses priced from £1.3 million. Flats, some shared-ownership, will be launched later this year. Call L&Q on 0844 406 9000.

Best for value: Bethnal Green, Hackney Wick, Whitechapel, Stepney Green and Mile End

Bethnal Green

Bethnal Green tops CBRE’s list of best value-for-money areas. At £430,000, prices are 40 per cent cheaper than the Zone 2 average, while travelling  time to the main employment centres is just eight minutes. Coming soon is The Rex, a sensitive redevelopment of the classic Art Deco former cinema in Bethnal Green Road that was one of the first in the UK to show talking  pictures. 

The conversion into 21 flats is the creation of Maxwell Hutchinson, a former Royal Institute of British Architects president. To register, call 020 8874 1565.

Three-bedroom apartments with winter gardens offering impressive views are for sale at The City Mills in E2. Prices from £795,000. Call 0844 4069289.

Whitechapel, Stepney Green and Mile End
A similar case can be made for Whitechapel, Stepney Green and Mile End, which are up to 55 per cent cheaper than the Zone 2 average. Camden Town, about the same commute time, is twice the price.

Hackney Wick
Hackney Wick is another rising star. The area butts up against Stratford’s sporting and leisure amenities and is also close to gentrified Victoria Park.

The redevelopment of an Anglican church, The Mission has brought 25 new homes, including a spectacular triplex apartment in the listed tower. Offers of more than £1 million. Call Fyfe Mcdade for more information on 020 7613 4044.

Best for potential: Holloway, Caledonian Road, Finsbury Park
Good-value pockets of north London include Holloway, Caledonian Road and Finsbury Park, where prices  are up to 25 per cent lower than the Zone 2 average.

From £635,000: two-bedroom flats at Four Hundred Caledonian Road in a former factory workshop and stable block. Call 020 7226 6611 

Four Hundred Caledonian Road is an imaginative redevelopment of a factory workshop and stable block into a courtyard scheme of 23 low-energy homes plus office studios. The project is the first in London to receive a prestigious Building for Life rating, a government-backed assessment  that seeks to improve the quality of homes and amenities at new developments. Two-bedroom flats are priced from £635,000. Call Currell on 020 7226 6611.

Also check out XY Apartments, a collection of 273 sleek, Scandi-style homes on the former Maiden Lane estate. Call 020 7299 3091.

The Park Collection is the latest phase of homes at Woodberry Down, a new 64-acre housing estate being rebuilt and regenerated alongside Finsbury Park’s giant reservoirs. It is a surprising waterfront setting for such an urban area — postcode N4 — with a nature reserve and landscaping. Prices start at £365,000. Call Berkeley Homes on 020 8985 9918.

What all these evolving areas have in common is the potential to benefit even more from the inexorable movement of people, businesses, development and infrastructure projects rippling out from central London.

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