London is known for its high cost of living, but there are still pockets within the city that offer affordable housing options without compromising on quality of life. Certain areas in London stand out as the most budget-friendly, making them ideal for those seeking affordable places to live. Here’s a guide to the cheapest areas to live in London, with insights into median house prices and key features such as access to shops, parks, amenities, safety, and public transportation.

Credit: OpenStreetMap Contributors

Shirley CR9 7

Median price: £464,036
Price relative to national average (adjusted for local income): +33%

Shirley may be tenth in our list but it’s a big-hitter for value. It has the lowest number of Asbos in the group (12-month rolling sum) and does very well at public transportation and cuisine. It has the second-lowest rating (in the group) for cafe culture (though still above average for England) and the lowest score for value (price relative to national average and price relative to local income). However, it has the highest level of tree cover (although this is not included in the index).

Shirley is a suburban area located near Croydon in South London. Known for its mix of residential neighborhoods and green spaces, it offers a peaceful setting with parks like Shirley Hills and Addington Hills nearby. Shirley is also home to historical buildings, including the 19th-century Shirley Windmill, and has good transport links to central Croydon and London, making it a desirable location for families and commuters. 

Plaistow North E13 9

Median price: £395,875
Price relative to national average (adjusted for local income): +42%

Plaistow North comes in at ninth place in our Index and would be much higher were it not for a comparatively low score for value and one of the lowest scores for safety (proxied by number of Asbos). Where it excels is public transport, cuisine offerings and cafe culture.

Plaistow North is a residential area located in the London Borough of Newham, in East London. It is characterized by a mix of Victorian-era homes and more modern developments. The area has a strong sense of community and is well-connected to central London through various public transportation options, including the nearby Plaistow Underground station. Local amenities, parks, and schools make it a family-friendly neighborhood, while its diverse population adds to the cultural richness of the area..

Plaistow E13 8

Median price: £407,625
Price relative to national average (adjusted for local income): +34%

Plaistow is a diverse, residential area in East London’s Newham, featuring Victorian homes, parks, and modern developments. It has good transport links via Plaistow Underground and is undergoing gradual regeneration.

In our index, Plaistow stands out for excellent bus connections, great cuisine availability and good cafe culture. There are twelve independent cafes in the immediate area. The nearest rail station is Forest Gate, which is on the excellent Elizabeth Line crossrail service. Although separate from the index, cycleability is strongest in Plaistow, with 14% of Cambridge’s rate of cycle usage.

Fairfield CR0 1

Median price: £417,500
Price relative to national average (adjusted for local income): +27%

Fairfield is a central area in Croydon, known for the Fairfield Halls, a major arts and entertainment venue. It has a mix of residential and commercial spaces, with recent regeneration bringing new developments. Fairfield benefits from excellent transport links, including proximity to East Croydon station, making it a well-connected part of the borough.

Interestingly, Fairfield has the most Grate-I and Grade-II-star listed buildings in the group. It also has the second-highest density of tree cover. However, it has among the fewest parks and it has the most Asbo citations. The good news is that these are down 18% year-on-year. 

Selhurst CR0 2

Median price: £345,000
Price relative to national average (adjusted for local income): +22%

Selhurst is the third-cheapest area in our index. Also in Croydon, it is known for being home to Crystal Palace Football Club’s Selhurst Park stadium. It features a mix of Victorian and modern housing and is well-connected by Selhurst railway station, offering easy access to central London. The area is primarily suburban with local schools and amenities.

Apart from being affordable, the area excels in cuisine. Like Fairfield, it boasts high average tree cover (relative to this group) and a decent number of listed buildings. Also, Asbo citations are down 34% year-on-year. 

Addiscombe West CR0 6

Median price: £409,625
Price relative to national average (adjusted for local income): +17%

Perhaps lesser known in this group is Addiscombe West in the outer London borough of Croydon. It is among the further-flung locations in our list (at 8.8 miles from Charing Cross) and ties for the longest journey time by rail (at 40 minutes, although rail characteristics are not part of our index). 

Like all of our list, Addiscombe West has excellent bus service. Also like all of our list, it has terrific availability of diverse cuisines and a good cafe culture. Perhaps most importantly, it is joint first place in terms of affordability, with the third-lowest price-income ratio relative to the English average.  

Custom House E16 3

Median price: £413,250
Price relative to national average (adjusted for local income): +16%

Custom House is a district in Newham, East London, undergoing significant regeneration. It features a mix of residential housing and new developments, driven by its proximity to the Royal Docks and the Excel Exhibition Centre. The area is well-connected, with Custom House station providing access to the Elizabeth line and DLR, offering quick routes to central London and Canary Wharf. Custom House is evolving with new amenities, schools, and community spaces, making it an increasingly attractive place to live.

It ranks high on our list because of its reasonable median house price, good bus availability and good cuisine options. It’s also within easy reach of central London. It also has the second-highest level of tree cover in the index and a good availability of local parks. Walkability is excellent but bikeability is very low, with a cycling rate 10% that of Cambridge’s. 

Canning Town North E16 4

Median price: £404,875
Price relative to national average (adjusted for local income): +21%

Canning Town North, in Newham, is not only in the top-ten cheap areas to live in London, it is also the closest to the centre of London. It’s undergone significant regeneration in recent years. The area is known for its diverse community, excellent transport links via the Jubilee Line and DLR, and proximity to key development hubs such as the Royal Docks and Canary Wharf.

Holding it back in our index is a slightly further distance to the nearest rail station (Maryland, at just under two miles away) and a relatively high number of Asbo citations. However, these have fallen 9% from a year ago.

Gascoigne IG11 7

Median price: £328,813
Price relative to national average (adjusted for local income): +14%

Gascoigne, located in East London within the borough of Barking and Dagenham, is an area known for its mix of residential developments and ongoing regeneration projects. Historically, it was characterized by large social housing estates, but recent initiatives have aimed to modernize the neighborhood with new homes, community spaces, and improved infrastructure. It is also culturally diverse, reflecting the broader demographics of East London, and benefits from proximity to central London, making it accessible while offering more affordable living options compared to other parts of the city.

Gascoigne scores highly in our index because it is the second-most affordable in the group, has excellent bus service and good cafe culture. With fewer Asbos, it would top this index. Perhaps that will soon come to pass: Asbos are down 3% year-on-year.

And the winner is ….

Enfield N18 3

Median price: £306,420
Price relative to national average (adjusted for local income): +18%

Endfield emerges as one of the true bargains of the group, with the lowest median house prices. It has the second-lowest number of Asbo citations. It also has good bus service and a fast connection to central London (Liverpool Street via Meridian Water). 

Enfield is a suburban area in North London, known for its rich history and blend of traditional and modern architecture. It has a vibrant town centre with a variety of shops, restaurants, and markets, offering a mix of local and national retailers. Enfield is also home to several historic landmarks, including Enfield Town Market and the 16th-century Enfield Grammar School. It is a popular residential area with a strong sense of community.

Less flattering is the fact that Enfield has the joint lowest number of parks in the group and the lowest rate of tree cover. 

 The index

The cheapest places to live in London:

Rank	Location	sector	Bus	Cuisine	Safety	Cafe	Value	Index
1	Enfield	N18 3	75	70	61	58	70	68.5
2	Gascoigne	IG11 7	86	66	34	70	69	67.7
3	Canning Town North	E16 4	87	83	34	72	66	66.8
4	Custom House	E16 3	81	77	49	64	66	66.6
5	Addiscombe West	CR0 6	76	77	40	75	66	66.4
6	Selhurst	CR0 2	86	77	35	48	68	66.0
7	Fairfield	CR0 1	93	77	28	71	65	65.5
8	Plaistow	E13 8	86	79	36	72	64	65.4
9	Plaistow North	E13 9	87	77	35	75	64	65.1
10	Shirley	CR9 7	78	73	76	55	63	64.9

The Cheapest Place to Live Near London Index is based on Oxford Scientia’s scoring of localities across England. Scores range from 0-100 and represent “distance to frontier”, where 100 is the best performing locality. 

Oxford Scientia scores localities on dozens of dimensions; the Index in today’s blog post highlights a few of those: Bus availability, availability of diverse cuisines, number of asbos, quality of cafe culture and, most importantly, value (median house price relative to the national average and median house price relative to local income). Value is weighted 70% and the other four categories are weighted 7.5% each. Only areas within ten miles of Charing Cross are considered. 

What’s missing?

Below is a heatmap of the median price of postcode sectors in London. Areas in white are cheaper. So why doesn’t a place like Bellingham in Lewisham feature in our index?

Credit: Oxford Scientia

The culprit in Bellingham’s case is cafes — specifically, a lack thereof. If you’re interested in cheapest postcode-sectors regardless of the bells and whistles, here you go.

The 20 cheapest median house prices in London:

Caveats and Disclaimers:

House prices are for terraced, not-newbuild homes. The data used to compile this list were current to June 2024 or the most recent date available before that. Price data can be patchy so it’s worth checking local prices carefully.