The 10 cheapest Zone 1 and 2 London postcodes to buy a starter flat

Exclusive research from Savills for Homes & Property has uncovered the 10 cheapest Zone 1 and 2 postcodes in London to buy a starter flat.

The estate agent looked at the average price of a ‘bottom quartile’ flat (ie the cheapest quarter of all flats) in every central London postcode and found several areas where first-time buyers can find a property for less of £300,000.

This means they would avoid paying stamp duty even after the stamp duty holiday is over.

Value-for-money buyers in Zone 1 should head to the SE11 6 (Lambeth) postcode, where the average selling price for a starter flat is £341,000, according to the research.

The postcode lies between the Thames, the Oval cricket ground, Elephant and Castle and Kennington and was the 29th.^th the cheapest ones identified in the research.

Dominic Reeves, sales director of Dexters Kennington, said he was seeing a lot of first-time buyers moving to postcodes that were previously renting in areas such 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 metro, whereas in the surrounding neighbourhoods, like the Oval, you can be two minutes from the station. , which is a big draw.

“People buying here now are counting on everything to open up again and I think they’ll be happy when things get back to normal,” he said.

The cheapest place to buy a starter flat in Zone 2 is technically the SW10 0 (Sands End) postcode.

The average price paid in this hinterland of Fulham Road is £201,000, although prices in this postcode include houseboats moored in Chelsea Harbour, which drag down the average figures.

A more realistic budget option is SE14 5, also known as New Cross, where a modest flat would cost an average of £265,000, and SE1 5, just off Old Kent Road, where a similar property would cost an average of £270,000 pounds.

Paul Collyer, area manager for Winkworth New Cross, said: “When you’re a first-time buyer, you want a place that will increase in value and New Cross is a booming area. We are about to receive a lot of money in the street. But you can get a studio flat for £200,000, even though we’re only 10 minutes from central London when we all go back to the office.’

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) came sixth in the list of cheapest postcodes, followed by Camberwell (SE5 7) with an average of £300,000 and Walworth (SE17 2) where the average starting price is £305,000.

Looking further down the list, Elephant and Castle (SE1 6), with its mix of new flats and low-cost ex-local authority flats, is another good hunting ground for buyers on slightly higher budgets, with mid-range flat prices modest from £380,000.

And in Whitechapel, on the outskirts of the city (E1 8), the average price of a small flat is £420,000.

The 10 cheapest London postcodes for a starter flat

_{Source: Savills}

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