Swanky boroughs in London have pockets of affordability for buyers and tenants
Westminster, Camden and Kensington might be known for their high house prices but they are bargain locations when it comes to buying and renting, according to new research.
A new analysis from online agents Emoov and Urban looked at prices and rental values for every London postcode and compared them with wider averages for whole boroughs, ranking them in terms of bargains for buyers and tenants.
With an average price of £445,498, Camden’s WC1H postcode is named as the best bargain being 47% cheaper than the borough average of £846,663. Kensington and Chelsea’s W10 is the capital’s second biggest bargain buy at £710,644 on average, also 47% cheaper than the £1,349,791 across the borough as a whole.
UB1 in Ealing, SW5 in Kensington and Chelsea, CR4 in Merton, N17 in Haringey, SE28 in Greenwich, UB5 in Ealing, SM4 in Merton and E10 in Hackney are all named in the top 10 for the best bargain buys in London.
When it comes to the rental market, the best bargains are also in some of London’s more prestigious boroughs. W9 is at the top of the list with a difference of 49% between the average rental cost and the borough as a whole.
It’s followed by TW12 in Richmond upon Thames with a 43% difference and W10 in Kensington and Chelsea where rental costs are 40% lower on average when compared to the wider borough.
W12 in Hammersmith and Fulham, TW2 in Richmond, W2 in Westminster, NW9 in Barnet, SM4 in Merton, TW11 in Richmond and CR4 in Merton are also in the top 10 bargain rental spots in London.
‘Although Barking and Dagenham is often considered the most affordable area to buy because of the borough’s overall price, it doesn’t make it the best option for every London house hunter,’ said Russell Quirk, Emoov chief executive officer.
‘People will have an idea of where they want to live based on location, commute to work, crime rates, green space and a whole host of other factors and so moving across the city purely based on price isn’t realistic,’ he explained.
‘What this research shows is that there are bargains to be had in every area of London, at every rung of the ladder and every price bracket. You might wish to live in Westminster W1K, but if the average house price of £3.6 million is too steep, you can live in W9, which is considerably cheaper, while avoiding a move outside of the borough,’ he added.
According to Adam Male, director of lettings at Urban, by adjusting rental expectations slightly and compromising on a more affordable postcode in the same borough, tenants can find more affordable homes.
‘With the impending changes to tenant fees and the introduction of recent legislative measures, there’s a good chance rent costs will continue to rise. This will be partly due to letting agents looking to recoup lost finances through other means, as well as landlords continuing to exit the buy to let sector and widening the gap between available supply and tenant demand,’ he said.
‘With this in mind, it’s advisable for those currently living at the top end of their rental affordability threshold to evaluate where else they could live, in order to provide themselves with a larger financial cushion,’ he added.