U.S. Markets closed

The only London borough where you can buy a home for under £300,000

Tom Belger
Finance and policy reporter
One London borough has property under £300,000. Photo: Kirsty O’Connor/PA Wire/PA Images

Barking and Dagenham is the only London borough where average property prices are still below £300,000, the latest housing figures show.

Data released today by the Office for National Statistics show the east London borough, historically part of Essex, saw properties sold for an average price of £299,399 ($396,022) in January.

The average price paid marked a 0.9% fall on the previous month, reflecting a wider slowdown in London’s property market.

The capital has recorded the lowest annual growth in prices of any region in the UK over the past year. Prices dropped by 1.6% in the year to January, compared to a 1.7% rise across Britain as a whole.

READ MORE: Apartment prices plummet as more and more Londoners rent

But the average price in London’s cheapest borough is still far higher than the average UK house price of £228,000.

London remains the most expensive place to buy property, with the average price across the capital as a whole still an eye-watering £472,000.

Daniel Tomlinson, an analyst at the Resolution Foundation think tank, said that house prices had risen by more than 40% in outer London over the past decade.

He tweeted that a “yawning gap” between house prices and earnings was largest in London, and that the slowdown since 2016 had only gone a small way to bridging the gap.

He wrote: “There are big differences between the pace of change in housing markets across the country. Over the past five years house prices have increased by 9% in the North East compared to increases of over 40% in Outer London and the East of England.”

READ MORE: Even HS2’s own stats show its massive London bias