Exclusive research from Savills for Homes & Property has uncovered the 10 cheapest postcodes in London’s Zones 1 and 2 to buy a starter flat.
The estate agent looked at the average price of a “lower quartile” flat (i.e. the cheapest quarter of all flats) in each postcode in central London and found several areas where first-time buyers can find a property for under £300,000.
This means that they would avoid paying stamp duty even after the stamp duty holiday has ended.
The postcode sits between the Thames, the Oval cricket ground, Elephant and Castle and Kennington and was the 29th cheapest identified in the research.
Dominic Reeves, sales director of Dexters Kennington said he sees a lot of first-time buyers moving into the postcode who were previously renting in such areas as Clapham, London Bridge or north of the river in Pimlico or Westminster.
“It’s better value for money because even though it’s so central, it’s a bit of an in-between area so you might have to walk 15 minutes to get to the Tube, whereas in surrounding neighbourhoods like Oval you can be two minutes from the station, which is a big draw.
“People buying here now are banking on everything opening up again and I think they’ll thank themselves when things go back to normal,” he said.
The cheapest place to buy a starter flat in Zone 2 is — technically — the SW10 0 postcode (Sands End).
The average price paid in this hinterland of the Fulham Road is £201,000, although prices in this postcode do include the house boats moored at Chelsea Harbour which drag average figures down.
A more realistic budget option is SE14 5, otherwise known as New Cross, where a modest flat would cost an average of £265,000, and SE1 5, just off the Old Kent Road, where a similar property would cost an average of £270,000.
Paul Collyer, area manager for Winkworth New Cross, said: “When you’re a first-time buyer you want somewhere that’s going to go up in value and New Cross is an up-and-coming area. We’re on the cusp of having a lot of money put into the high street. But you can still pick up a studio for £200,000 even though we’re only 10 minutes from central London when we all return to the office again.”
Also in south-east London, the Deptford postcodes of SE8 4 and SE8 5 offer good value with average prices of £274,000 and £293,000 respectively.
With an average price of £295,000, Hoxton (E2 8) placed sixth on the list of cheapest postcodes, followed by Camberwell (SE5 7) at £300,000 average and Walworth (SE17 2) where the average starter flat is £305,000.
Looking further down the list, Elephant and Castle (SE1 6), with its mix of new apartments and low-cost ex-local authority flats, is another good hunting ground for buyers with slightly bigger budgets, with average prices for modest flats standing at £380,000.
And in Whitechapel, on the fringes of the city (E1 8), the average price of a small flat is £420,000.
The 10 cheapest London postcodes for a starter flat
Lower quartile flat sale price