Life has just got that bit harder for first-time buyers trying to step on to London’s housing market. From April 1, the stamp duty threshold falls from £425,000 to £300,000, well below a first-time buyer’s average spend in London.
Added to that, the price of a home eligible for first-time property relief falls from £625,000 to £500,000. Pay more and you’ll have to dig deep for standard stamp duty rates. It’s an April Fool’s joke that’s no laughing matter.
But some of the areas where you can still find a property at about £500,000 may surprise you. “London is home to a notoriously competitive property market, particularly for first-time buyers,” says Matt Thompson, head of sales at Chestertons. “While the average property price nears the £500,000 mark, the capital boasts a number of options below this price point.”
According to Hamptons data, the average first-time buyer in greater London pays £554,050. That figure has fallen very marginally over the past 12 months, but has increased 83 per cent since 2008. It covers a wide range.
First-time buyers in Kensington and Chelsea splash out £1,339,540, presumably with the Bank of Mum and Dad doing some heavy lifting, while at the other end of the scale, those in Barking and Dagenham, Croydon and Bexley — London’s three most affordable boroughs — pay £346,550, £399,830 and £400,660 respectively.
Here are some two-bedroom options in Zone 2 and 3 that fit the £500,000 bill.
Canary Wharf, E14
Sold property prices in Canary Wharf over the past 12 months are four per cent down year-on-year and 17 per cent down on their 2021 peaks, with several options below £500,000. Figures from estate agency Kinleigh, Folkard & Hayward show the average sold price for a flat in Canary Wharf was £481,808 in 2024.
“Some first-time buyers might be surprised to find that they could purchase a two-bedroom apartment in Canary Wharf for under £500,000,” says Thompson. “The area has shaken off its corporate image to position itself as a major lifestyle location. The opening of the Elizabeth Line three years ago boosted Canary Wharf further.”
Holly Lovejoy, sales consultant at Savills, adds: “Canary Wharf has undergone a huge transformation in the last 30 years to become a ready-made entertainment district with more than 300 shops, cafés, bars and restaurants and a year-round events programme, open water swimming through to outdoor cinemas and alfresco arts.
“It holds particular appeal for young professionals working there or in the City, attracted by a shorter commute while benefiting from the relative value on offer.”
Muswell Hill, N10
First-time buyers in the borough of Haringey pay an average of £612,370, which makes two-bedroom flats in Muswell Hill — Zone 3 — look interesting value. The average sold price there last year was £506,600, with overall property prices falling 2.4 per cent.
“Two-bedroom first-floor conversions were difficult to sell post-Covid but now we are seeing huge demand,” says Natalie Churchman, head of sales at Hamptons Muswell Hill. “The £500,000 price tag would be without any outdoor space. Add a garden or any outdoor space and that jumps to £700,000 plus.”
With its skyline view over central London, Edwardian terraces and handsome Broadway, Muswell Hill packs in the character.
The lack of a Tube station might deter some — East Finchley is about 15 minutes away on foot and Highgate a little further — but the pubs, independent cafés, Everyman Cinema, weekend farmers’ market in Alexandra Palace and Planet Organic prove magnetic.
“Muswell Hill isn’t transient,” says Churchman, pointing out that many residents upsize and downsize within the area. “It’s safe, vibrant and has plenty going on. Its popularity with families adds to the warm community spirit and that brings young couples, too.”
Putney, SW15
With Wimbledon Common and Richmond Park nearby, the Thames on the doorstep and the lowest council tax not only in London but in the entire country thanks to its location in the borough of Wandsworth,
what’s not to like about Putney? It’s certainly an active location, with tennis, cricket and rowing clubs, while transport links to central London are excellent.
Most properties in Putney are flats, with an average sold price last year of £525,785 according to Rightmove data, down
three per cent on the year before and nine per cent from their 2022 highs. Foxtons puts Putney flats at an average of £487,777, with two-bedroom flats covering a wide range from £205,500 to £1,100,00.
“First-time buyers might also expect Putney to be out of their budget range,” acknowledges Thompson. “However, we recently sold a two-bedroom period maisonette for £450,000 and there are still a number of attractive options sub-£500,000. A lot of buyers are drawn to Putney for its access to green spaces and its high street.” Cathy Hawker
