In recent years, a number of London suburbs have undergone, or are undergoing, regeneration programmes that are transforming them into popular areas for young people looking for starter homes. These areas are some of the cheapest places to buy property in London. And the best thing about these areas? Because they are booming you will see a year on year capital growth on your property. There is very little risk in buying property in London regeneration hotspots. The challenge is getting there before everyone else!
So where are these hotspots and why are they some of the cheapest places to buy property in London? Areas that are experiencing growth through regeneration projects include Luton, Sutton and Croydon. Many of these areas were once considered run-down and unattractive. Not anymore. Not only are they now some of the cheapest places to buy property in London, they offer so much more for families, young professionals and couples looking for an active, fulfilling life away from Central London.
Luton has an average house price of £298,000 and if you purchase a starter home in the area you will expect to see 18.1% capital growth in the first year. With its own airport and great transport links into London, Luton is growing in popularity.
Sutton regularly appears on lists of the cheapest places to buy property in London, especially for first-time buyers. Why? It has an average house price of £311,000 and new build developments will expect to see a 15.7% increase in the first year. Superb transport links, great parks, commercial prospects, quality schools and low crime rates are just a few reasons why Sutton is more popular than ever.
Croydon has recently topped a list of starter home buyer hotspots with the biggest capital growth for first time buyers. According to Right Move, the demand for property in Croydon has seen prices sour by up to 20% – the highest in the UK. And despite this, Croydon is still one of the cheapest places to buy property in London. Property prices are £185,000 less than the London average and the average property price in Croydon is £297,770. The town is set to continue its growth over the coming years with 5,000 new homes planned in 2016, 6,000 in 2017 and a further 8,000 in 2018. Whether it retains its tag as one of the cheapest places to buy property in London remains to be seen, but right now, it’s certainly a hotspot!