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The top 5 cheapest places to live in London

3 mins read
by Lisa-Marie Voneshen
Last updated Monday, December 11, 2023

We look into the top 5 cheapest places to live in London based on new average house price data. Discover more here.

The housing market has been firmly in the spotlight over the last few years as prices surged during the pandemic.

More recently, we’ve seen prices fall as higher mortgage rates and the cost of living crisis take their toll.

If you’re looking to buy a home in London, one of the most expensive regions in the UK with average prices of £795,355 over the last year, it’s worth doing your research as prices can vary hugely.

Rightmove has crunched the data to reveal the cheapest areas to buy a home in the capital.

This data is based on average asking prices in May 2023, but should give you some insight into the cheapest places to live in London.

Where are the cheapest areas to buy in London?

If you are looking to buy in south-east or east London, you’re in luck as it’s home to four of the cheapest areas.

AreaAverage asking price
Erith£348,753
Thamesmead£357,302
Dagenham£358,689
Barking£359,478
Edmonton£375,660

Erith

Erith, in south-east London, is the cheapest place to buy a home in the city, with the average home costing £348,753.

If you’re hoping to commute into London, it’ll take you between 35 minutes and an hour by train, depending on your route.

There have recently been two major renevoation projects in Erith focusing on Park East and Erith Park, with more regeneration projects in the pipeline, and it also has a shopping centre.

Thamesmead

In second place is Thamesmead, also in south-east London, with an average asking price of £357,302.

Nearby stations include Plumstead (around 40 minutes from Central London by train) and Belvedere, which is between half an hour and an hour away from London.

There’s a huge focus on regenerating Thamesmead, including building 2,000 new homes, while Transport for London (TfL) is proposing to extend the Docklands Light Railway to the area.

Dagenham and Barking

Dagenham and Barking, both in east London, are also affordable areas to live in London with travel times into London from as little as 30 minutes.

The property prices are ideal for those with tight budgets with average prices of £358,689 for Dagenham and £359,478 for Barking

The borough was ranked the least happiest place to live in Greater London, according to Rightmove’s recent Happy at Home survey.

Richmond upon Thames took the top spot in Greater London and was ranked the 11th happiest place to live nationally.

Edmonton

Last on the list is Edmonton, in north London, where the average property price is £375,660 and the commute into Central London is around 45 minutes.

A regeneration project is currently ongoing in Edmonton in a bid to boost jobs and the availability of homes.

Seek mortgage advice

Before you start searching for your new home, consider your budget and what you want, whether it’s a short commute, an abundance of green spaces or close proximity to good schools.

It’s worth talking to a mortgage broker who will look at your personal circumstances and find the right mortgage for you.

See also:

The most expensive places to live in London

The cheapest places to live in Yorkshire

The cheapest places to live in the West Midlands

The cheapest places to live in the South East

The cheapest places to live in the South West

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Author
Lisa-Marie Voneshen
Lisa-Marie Voneshen is a Senior Content Writer at Unbiased. She is an award-winning journalist with nearly a decade of experience writing and editing content across various areas, including personal finance and investing.