Barking and Dagenham has been named as one of the “most affordable London boroughs” for first-time buyers in 2021.
The research, published by Mojo Mortgages, takes into account house prices, the average annual salary, and monthly take-home pay.
According to the analysis, property prices are now at an “all time high”, which makes the already mammoth task of climbing onto the property ladder an even greater one.
The latest statistics suggest that house prices have risen by some 10.2% in the last year alone, representing the fastest annual rate of growth in 14 years. This has been driven largely by the Stamp Duty holiday and a shortage of suitable properties.
But if you are looking to settle down in the capital this year, there is no better place to do so than East London, the study suggests.
Barking and Dagenham has the “cheapest” properties on average, coming in at just under £312,000. This is compared to Westminster and Camden, where properties fetch more than £1 million on average.
And when taking into account a variety of affordability factors, such as local wages and house prices, Barking and Dagenham and Newham are among the three most affordable boroughs in London, behind only Bexley.
Commenting on the report, Nisha Vaidya, of consumer finance website money.co.uk, said: “There are many factors, like your salary, regular outgoings, and debt-to-income ratio that will impact whether a home is within your reach.
“A good rule of thumb is to allocate no more than 35% of your gross income to your monthly mortgage repayments.
“Any more than this and you could become ‘house poor’, where you own a house, but lack the funds to do other important things such as saving money or going on holiday.”
For help and advice on buying your dream home, please get in touch with our property agents today.
