London’s stratospheric property market is hard to break into but a new study reveals today exactly where buyers can find the best-value property in Tube Zones 1 to 5.
The data looks not at average overall price but at price per square foot – a more accurate indicator of property cost.
London travel Zone 1
It found the best value in Zone 1 is to be found in the south east London regeneration zone of Elephant & Castle and Kennington (SE11), where there is a good mix of new build, period, and ex local authority property to choose from. The average price per sq ft stands at £876 - almost 45 per cent cheaper than the average price per sq ft across Zone 2, which stands at a hefty £1,380.
Buyers wanting to live close to the City could look at the Finsbury area (EC1R) where average price a sq ft stands at £1,039, or Old Street, where property sells for an average £1,127 a sq ft.
Prices drop significantly for buyers househunting in Zone 2, according to the research by Hamptons International. The average price across the zone is £894 a sq ft, but in New Cross (SE14) this drops to £630. Deptford (SE8) and Bow (E3) are almost equally good value at £673 and £677 a sq ft respectively.
In Zone 3 the best value area is East Ham (E6), where average price a sq ft comes in at £410, compared to a zone average of £675,000.
Homes in Plaistow and Forest Gate are also highlighted for their value for money, with average prices of £432 and £476 a sq ft.
Zones 4 and 5
Of course, the further from the centre of London and prices continue to fall. In Zone 4 it is Barking (IG11) which has the best value homes, at £388 a sq ft, whilst in Zone 5 the leading location is Dagenham (RM10), at an average price of £352 a sq ft.
David Fell, research analyst at Hamptons International and author of today’s study, said the research is a graphic illustration of the savings to be made for buyers willing to move a zone or two further out of central London. “On a pound a sq ft basis the price of a home falls by a fifth between each zone, with the largest gap between Zones 1 and 2,” he said.
“While the average … (full) … price of a Zone 1 home is in seven figures, relatively affordable areas still exist on the fringes. Over the last couple of years it’s these parts of the capital that have increasingly been the focus of attention for many developers.”
Further from central London, said Mr Fell, the best value is to be found in south east and east London. However as buyers stream out of more expensive locations in search of affordable property traditionally inexpensive postcodes are beginning to catch up.
“The price gap between these neighbourhoods and their more expensive counterparts further north and west has narrowed in every year since 2013,” he said