Property prices: Buying a bargain London home

A typical London home now costs nearly ten times the average local income, as surging house prices reduce affordability to the lowest level on record.

It comes as the latest figures from Nationwide Building Society show the capital’s house price growth has slowed from 7.4 per cent to 6 per cent.

But with hybrid working and the Covid-era race-for-space still driving many people’s property decisions, is it still possible to bag a relative bargain well inside the Zones?

Research from Savills estate agents shows a typical flat in Zone 4 costs over £610,000 but in Zone 2, an equivalent home costs about £364,000.

In New Cross, also in Zone 2, one of the best value deals is a flat for about £324,000, and Peckham is reportedly best value for terraced house at about £590,000.

But go a little further out to Zone 3 and to East Ham for flat at around £238,000, while in Zone 4’s Ilford, the savviest buyers can find an apartment for about £177,000 and a Thamesmead terraced house for around £337,000.

We discover more about the new factors driving property price growth, whether it’s sustainable and why the Elizabeth Line could be a game-changer for home prices.

There’s also analysis of the latest plans to try and tackle London’s cladding scandal affecting flats and why the rental market is red hot again with sealed bids after pandemic restrictions were lifted.

To examine the latest data, The Leader’s joined by Evening Standard business editor Jonathan Prynn and Homes & Property editor Prudence Ivey.

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