London property prices span a vast range — from under £300,000 median in the most affordable outer boroughs to well over £1 million in prime central areas. When comparing affordability, median price is more informative than mean (average) price, because it is not skewed by a small number of ultra-premium transactions. The median represents the price at which half of sales complete above and half below — a realistic anchor for what most buyers actually pay. Equally important is the 1-year price trend: a cheaper borough where prices are rising sharply may be better value than one where prices are flat or falling. Affordability must also be weighed against commute cost and time — cheaper outer boroughs often require longer, more expensive journeys to employment centres, which should factor into your total cost of living calculation.
10 cheapest boroughs to buy in London
Ranked by median property price — cheapest first
Full ranking — all boroughs by price
Most affordable first — includes 1-year price change and liveability score
Affordability tips for London buyers
Stamp duty thresholds matter
In 2026, first-time buyer stamp duty relief applies up to £500,000, with no duty on the first £425,000. This makes properties under £500k significantly more attractive for first buyers — it's one reason why cheaper outer boroughs, where a larger share of stock falls below this threshold, attract strong first-time buyer demand.
Commuter cost is part of the price
An annual Zone 1–4 Travelcard costs around £2,500–£3,000. Moving from Zone 2 to Zone 4 might save £50,000 on purchase price but add £30,000 in commuting costs over a decade. Factor the full 10-year cost, not just the headline price, into your affordability calculation.
Buy-to-let yield in cheaper boroughs
Cheaper boroughs often offer better rental yields for investors, since rents do not fall as steeply as prices relative to central London. Barking and Dagenham, Havering, and Bexley have historically offered gross yields of 5–7% — well above the 3–4% typical in inner London. Combined with lower entry costs, these boroughs attract both first-time buyers and landlords.
Frequently asked questions
What is the cheapest borough in London to buy?
Barking and Dagenham is consistently London's most affordable borough, with median property prices significantly below the London average. Havering, Bexley, and Sutton also sit at the affordable end of the spectrum. These outer east and south-east boroughs offer good value but require longer commutes to Zone 1.
Where can I buy a house in London for under £400k?
In 2026, buying a house (not a flat) under £400,000 in London is challenging but possible in outer east London boroughs such as Barking and Dagenham and Havering, as well as parts of outer south-east London including Bexley. At this price point you are typically looking at terraced houses or smaller semis. Flats under £400k are available in a wider range of boroughs.
Is it worth buying in cheaper London boroughs?
Yes — cheaper London boroughs can offer excellent value, particularly if price growth is trending upward. Barking and Dagenham, for example, has benefited from Crossrail/Elizabeth line access and significant regeneration investment, driving above-average price growth from a low base. The key is to assess both current value and growth trajectory, not just the headline price.
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