Best Areas to Buy in London Under £400,000 in 2025

Is it still possible to buy in London for under £400,000?

The short answer is yes — but you need to know where to look. While prime central London and many inner boroughs have moved well beyond this threshold, there are still a significant number of London boroughs where the average property price sits at or below £400,000, particularly for flats and terraced houses.

With the right mortgage and deposit, a £400,000 purchase requires as little as a £20,000 deposit (5% with the right lender), though aiming for 10% will unlock far better rates. Here are the areas where your budget will go furthest in 2025.

Barking and Dagenham: London's most affordable borough

With average prices around £350,000, Barking and Dagenham is consistently the most affordable borough in Greater London. It is no longer the overlooked corner of east London it once was — the Elizabeth line has transformed Barking's connectivity, putting Bond Street just 22 minutes away.

Becontree, one of the largest council housing estates ever built in the UK, has seen substantial private development and regeneration investment. First time buyers can find 2-bedroom flats from as little as £250,000 and 3-bedroom terraced houses in the high £200,000s to low £300,000s.

The area is popular with buyers relocating from Hackney and Newham who have been priced out, and buy to let yields are among the strongest in Greater London at 5–6%.

Croydon: south London's regeneration hotspot

Croydon is one of the most significant regeneration stories in London. Average prices around £380,000 and fast rail links — London Bridge in 15 minutes, Victoria in 20 — make it exceptional value by south London standards.

The Croydon town centre masterplan involves billions of pounds of investment in new homes, retail, and public realm. Buyers who get in now are positioning themselves well ahead of that uplift.

South Croydon and Purley attract families with more suburban properties, while central Croydon suits commuters and young professionals seeking value close to the Overground and tram network.

Havering: the Elizabeth line effect

Havering — covering Romford, Hornchurch, and Upminster — benefits enormously from the Elizabeth line. Romford to Liverpool Street takes just 22 minutes, yet average prices across the borough remain around £390,000.

Upminster is particularly popular with families: period homes, good schools, and a village feel make it one of the most liveable places in the borough. Hornchurch offers a strong high street and community feel.

Given Havering's connectivity and affordability, it is frequently cited by estate agents as one of the best-value locations accessible from the Elizabeth line.

Bexley: our home borough — and a genuinely great place to live

We are based in Bexley, and we genuinely believe it is one of London's hidden gems. Average prices around £390,000, a mix of Victorian terraces, 1930s semis, and new builds, and fast trains to London Bridge and Charing Cross make it a consistent choice for families and first time buyers.

Bexleyheath town centre has seen significant investment, and the nearby Elizabeth line at Abbey Wood (Woolwich) has improved connectivity further. Sidcup and Welling are particularly popular with buyers stepping up from flats to their first house.

Enfield: north London value with Piccadilly line access

Enfield is north London's most northerly borough and one of its best-value. Average prices around £430,000 are higher than our other picks, but properties in Edmonton, Ponders End, and the Enfield Lock area can be found well under £350,000.

The Piccadilly line reaches Cockfosters in the south of the borough, while Greater Anglia trains serve Edmonton Green and further north. The Lee Valley regeneration scheme is bringing thousands of new homes and improved infrastructure to the area over the coming decade.

Home Counties alternatives to consider

If your budget is £400,000 and you are open to commuting, the Home Counties offer extraordinary value. In Kent, you can buy a 3–4 bedroom family home for £350,000–£400,000 in areas like Dartford or Gravesend — with the Elizabeth line or Southeastern trains getting you into central London in 30–45 minutes.

Berkshire and Essex similarly offer excellent value for London commuters, with the Elizabeth line making Reading, Slough, and Chelmsford more accessible than ever.

Frequently asked questions

What deposit do I need to buy a £400,000 property in London?

The minimum deposit is 5% (£20,000), though most lenders prefer 10% (£40,000). A 10% deposit gives you access to significantly better mortgage rates and is achievable for many first time buyers, particularly when combined with a Lifetime ISA.

Are there any government schemes to help buy in London?

Yes — Shared Ownership allows you to purchase a share of a property (typically 25–75%) and is widely available across the boroughs listed. The Lifetime ISA adds a 25% government bonus to your savings. First time buyers also benefit from stamp duty relief on purchases up to £500,000.

Which London area has the best transport links under £400,000?

Barking and Havering (Elizabeth line), Croydon (Thameslink and Southern), and Bexley (Southeastern) all offer fast central London commutes at average prices at or below £400,000. We would recommend getting a mortgage agreed in principle before you start viewing, so you can move quickly when you find the right property.

Important information: This article is for general information purposes only and does not constitute financial advice. Mortgage eligibility and rates vary by individual circumstances. Mortgage International is an appointed representative of The Right Mortgage Limited, authorised and regulated by the Financial Conduct Authority (FCA Ref: 478810). Your home may be repossessed if you do not keep up repayments on your mortgage.