The best place to buy in London for you
05-17-2015
From the highest house prices, to lowest rents, to youngest scene - live in one of the 9 best boroughs in the capital
By Anna White, Property correspondent
Greater London, which covers an area of roughly 600 sq miles and has over eight million residents, is comprised of a range of mini housing markets.
While all are linked by the issue of rising house prices and a lack of supply, a new report from the property group, CBRE, has analysed the inner and outer boroughs, their levels of affordability, and each one's suitability for different buyers and tenants.
Here are the 9 best boroughs to house Londoners today, as selected by the Telegraph and CBRE.
1. Where money is no object
Kensington and Chelsea occupies 1pc of the capital's total area but remains the most prestigious borough. House prices are the highest across London and is a playground for cash buyers.
Average house price: £1.3m
Average rent: £3,433 per month
House price to earnings ratio: 12.4
House price growth over the next five years: 4.5pc per annum
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A family home in Chelsea.
2. The budget borough
Barking and Dagenham has the lowest house prices of any of the 33 London boroughs with the most sensible affordability ratio of values to earnings and is described by CBRE as the "top pick for first-time buyers."
Average house price: £270,256
Average rental price: £1,063
House price to earnings ratio: 5.6
House price growth over the next five years: 5.5pc per annum
A property on the market in Barking & Dagenham with the online agent, eMoov.
From the highest house prices, to lowest rents, to youngest scene - live in one of the 9 best boroughs in the capital
3. A quiet life
The leafy borough of Richmond-upon-Thames, home to Richmond Park and a one-time royal palace, had the fewest new developments built in 2014. It also has the fourth lowest crime rate in London.
The green space isn't restricted to Richmond Park, but also includes Richmond Green, Old Deer Park and Marble Hill in St Margaret's Village. However, a home here, based on average earnings, is even more unaffordable than Kensington and Chelsea.
Average house price: £630,489
Average rental price: £1,755
House price to earnings ratio: 14.8
House price growth over the next five years: 6pc per annum
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A herd of stags in Richmond Park
4. A young, hip crowd
In 2014 Tower Hamlets was home to the youngest crowd across the whole of Greater London with 20-something professionals flocking there to get on the property ladder, or find affordable rent with easy access to the City and Canary Wharf.
In fact, towers of rental accommodation are going up in Canary Wharf, in between the banks and the bars, at varying prices, so that workers can live, sleep and play all within a square mile.
Average house price: £479,971
Average rental price: £2,160
House price to earnings ratio: 6.9
House price growth over the next five years: 6pc per annum
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The Canary Wharf estate (above) is building rental blocks in such a way that the facilities are equal – such as same size bedrooms and en-suites – with communal areas.
5. The cheapest rents
Bexley stands out as one of the most affordable places to live in London with the cheapest rents at £919 per calendar month for a two bedroom flat according to the indepth, borough-by-borough CBRE report.
The area, which is in touching distance of inner London while feeling surburban with over 100 parks and open spaces.
Average house price: £281,341
Average rental price: £919
House price to earnings ratio: 7.9
House price growth over the next five years: 5pc per annum
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A five-bedroom house in Bexley, valued at £525,000, and publicised on the property search website, OnTheMarket.com.
6. A bustling scene
Islington is the most dense borough with the highest number of people per km² - 139 people per hectare compared with the London average of 52.
The IT crowd are also drawn to this area due to its close proximity to "Tech City" or "Silicon Roundabout" in Old Street.
Average house price: £662,198
Average rental price: £2,099
House price to earnings ratio: 12.4
House price growth over the next five years: 4pc
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Even the surrounding waterways are busy as canoists paddle through Islington lock.
7. The right move for landlords
Croydon, hit hard by the London riots, but now in the midst of a regeneration overhaul, proved to be the best place for buy-to-let properties. Landlords saw the biggest rise in rents in 2014, with growth set to continue as the town gentrifies.
"Despite being only 20 minutes by train from central London, Croydon has historically been an undervalued area due to its poor reputation," said Jennet Siebrits, head of residential research at CBRE. "But £1bn has been committed to transforming the economy and town centre."
Average house price: £320,123
Average rental price: £1,253
House price to earnings ratio: 7.6
House price growth over the next five years: 6pc
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A property for sale in Croydon, valued at £600,000, via OnTheMarket.com.
8. The best views of London
At its most northerly tip, the CBRE report claimed, Southwark contains argulably the most valuable stretch of the Southbank river. A stone's throw from the City and home to the Shard, Tate Modern and Borough Market, it is benefitting from the overspill from the Vauxhall, Battersea Power Station and Nine Elms regeneration.
New build tower blocks aimed at young professionals and with luxury penthouses, are sprining up in Southwark and along the Southbank, and Canada Water has been transformed thanks to the Jubliee Line. Expect the wave of regeneration to sweep through the rest of the borough, revitalising Surrey Quays and Old Kent Road.
Average house price: £555,849
Average rental price: £1,685
House price to earnings ratio: 9.7
House price growth over the next five years: 5.5pc per annum
Discover riverside living on London's Southbank
9. Nappy valley
Wandsworth, which includes areas such as Battersea, Wandsworth Town and Clapham, is the greenest borough in London, and perfect for inner London families, if not a little pricey.
It has 670 hectares of open space and the highest number of outstanding primary schools in London.
Average house price: £555,849
Average rental price: £1,685
House price to earnings ratio: 9.7
House price growth over the next five years: 5.5pc per annum
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One of Thomas Hardy's homes in Wandsworth Old Town.