Most affordable London areas near Tube and train stations
Most affordable London areas near Tube or rail links cost from £270k, well within reach of two average earners, but still unaffordable to single first-time buyers.
Dagenham East, where for more than 20 years the Ford of Britain company produced the iconic post-war motor, has emerged top of a new study to discover how far a typical income will stretch around London’s Tube and train stations.
The average property close to Dagenham East Tube, in Zone 5, costs just under £270,000. This means a couple both earning close to the London median salary of just under £34,000 would need to borrow three-and-a-half times their joint income and raise a 10 per cent deposit.
To put this into perspective, the average price of a property across London now stands at £585,367, so that same couple would need to borrow almost 16 times their joint salaries.
The study, by Savills, found some affordable pockets of housing around stations in more central locations, too.
Homes around North Acton in Zone 2, and Abbey Road DLR near Stratford, in Zone 2/3, would cost 3.8 and four times a couple’s annual income respectively.
The 20 most affordable London areas options for young couples also includes some key regeneration locations, including Woolwich Arsenal in Zone 4, and Canning Town and Tottenham Hale, both Zone 3.
However, for single buyers, the picture is far less optimistic. They would need to borrow 7.2 times London’s average salary to secure an average property in Dagenham East with a 10 per cent deposit.
To live in Canning Town they would need to borrow more than nine times their annual salary.
And for a home in East Ham — the most expensive location within today’s top 20 with an average property price of £364,929 — they would need to borrow almost 10 times their salary and raise a deposit of just over £36,000, which is more than an entire year’s pre-tax pay.
“This analysis highlights how few locations that are in close proximity to a station are affordable for couples — even those who have managed to accumulate a 10 per cent deposit,” said Frances Clacy, research analyst at Savills and author of today’s report.
“For those looking to buy alone, the average property near to a Tube station looks completely out of reach on the basis of a 10 per cent deposit.”
The 20 most affordable London Tube and train stations for couples to buy near
|Station||Average house price||Loan to income ratio|
|Stratford High Street||£349,657||4.7|