London's Coolest Property Spot

The rising prices of houses have left those searching for their first homes in a difficult position as affordability has reached its highest ever level. Nevertheless, recent research has revealed that some exciting deals can be found if people extend their searches.

London residential property search engine Zoomf.com has discovered a London postcode only eight miles from the City where property can be found at £10,000 less than the UK average. This location has the River Thames within easy reach and an international airport.

Thamesmead in South East London may not yet be one of the glamour spots of the capital, but in SE28 properties can be found at less than £200,000. Zoomf found that 186 properties for sale in SE28 in late July has an average price of £187,716. According to latest data from the Halifax, the average British home now costs £198,915.

In Thamesmead it is not just flats that can be found at that price level; there are also a number of modern houses with two or three bedrooms - and it’s just 25 minutes to London Bridge on the train. The low prices in SE28 are mainly due to its location: the south bank of the Thames near the former industrial areas of the Thames Gateway. It lacks the appeal of a Hampstead or a Notting Hill – but it also lacks their extremely high prices. If buyers look just a little further afield than they might normally consider, then bargains are there to be found.

Mike Carter, co-founder of Zoomf.com, said: “Who would have thought it? A postcode in London that's cheaper — a good deal cheaper, in fact — than the national average and only six miles from Canary Wharf, arguably the global epicentre of financial services. Crucially, it's also an area that's set to benefit from massive inward investment in the years ahead, most notably the Thames Gateway Bridge, which will drastically cut travel times to the City and Canary Wharf. The billions of pounds that are being ploughed into East London to pave the way for the Olympics will also have an extremely positive effect. Could this be the postcode in London with the most potential for price growth in the years ahead?”

It certainly has a lot going for it, and in five years time may look like the investment of a lifetime.

As property becomes so expensive, especially in London, it is important for buyers to understand that by widening their search areas and loosening their requirements, they may yet find affordable properties. It is crucial for buyers to find property they can afford, but that will also retain its value in a period when the rising price of property is starting to cool. This is as true for areas like Thamesmead as it is for London’s hottest hotspots.

In August the Bank of England has decided to hold interest rates at 5.75%, but borrowers are warned to be cautious. At least one more rate rise is in the offing in 2006, and anyone looking at any kind of variable rate (tracker, discounted mortgages) should be wary of rising repayment in the future.

Tom Smith
6th August 2007

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