House prices in London are up only a third compared to other areas and you can find cheaper homes for commuting to the capital.
Properties in the UK have seen strong house price growth over the year with the South West up 10.5% compared to London rising only 3.6% in April, according to Zoopla.
First time buyers and home movers buying to commute to the capital have great choices with Gravesend being the cheapest where a two-bedroom property price averages £240,000.
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Cheaper homes close to the capital
Many of the cheaper are a short commute to the capital with house prices ranging from £240,000 to £300,000 for a two-bedroom property affordable for first time buyers.
This table from Zoopla shows examples of the cheapest areas in and around London to buy a 2-bedroom home and 15% deposit amount.
| Area | House prices | 15% Deposit |
|---|---|---|
| Gravesend | £240,000 | £220,068 |
| Harlow | £250,000 | £148,659 |
| Broxbourne | £260,000 | £185,062 |
| Dartford | £270,000 | £132,250 |
| Barking | £275,000 | £178,750 |
| Enfield | £280,000 | £192,902 |
| Waltham Cross | £290,000 | £135,570 |
| Cheshunt | £290,000 | £155,716 |
| Thornton Heath | £300,000 | £145,845 |
| Manor Park | £300,000 | £126,437 |
Properties in North Kent offer cheaper homes with Gravesend the cheapest where you can buy a two-bedroom property for £240,000 and with a 15% deposit you would need £36,000.
For a three-bedroom home in Gravesend the price is £320,000 and a 15% deposit would require £48,000 in savings.
First time buyers could get help from family members for the deposit as equity release buyers can access cash using a lifetime mortgage and gift to children and grandchildren.
Other areas with similar prices are Swanscombe, Ebbsfleet, Dartford and Greenhithe that benefit from local amenities such as the Bluewater Shopping Centre.
In North East London you can find two-bedroom homes for £280,000 to £290,000 in Enfield, Waltham Cross, Cheshunt and Broxbourne.
Property prices are unlikely to continue rising with double-digit figures for 2022 although the shortage of supply will mean popular areas will continue to see rises in values.
House price growth is slowing
The lack of supply of suitable homes on the market has seen house prices rise in the last two years with average growth at 10.5% over the last year to May 2022.
House price growth is slowing according to Halifax, which was as high as 11.2% year-on-year in February, 11.1% in March and remains above the 9.6% in May 2021.
Average property values are £27,390 higher over the year rising from £261,709 in May last year to £289,099 currently.
Over the past ten years house prices have increased 74% or by £123,016 with the strongest rise in London up 84.2% followed by East of England higher by 84.0% and East Midlands up 82.1%.
If you are a remortgage buyer with equity gains, you can take a further advance and use this to add space to your home such as a loft conversion, an extension or other home improvements.
The performance of London in 2022 is in contrast to the previous ten year period although this does offer homebuyers returning to the capital the opportunity to afford to buy in cheaper areas.
What are your next steps?
Speak to our LCM mortgage advisers if you are buying your first home and looking for a competitive mortgage deal. Learn more by using the property value tracker chart and equity release calculator.
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If you are accessing cash from your home using equity release, we can recommend the products to meet your circumstances so begin your equity release quote for the latest provider offers.
