No matter your circumstances, chances are London will have a property that meets your requirements. Whether you’re a single professional seeking a flat with a city view, you’re a recent graduate who wants to make the most of being in the prime of your life, or you’re looking to raise a family with good schools and parks nearby, England’s capital is almost guaranteed to have the right property for you.
But, as with anything — particularly property prices — having all your requirements met usually comes at a cost. This means you’re likely to be wondering how much your dream home in London will set you back.
In this guide, we’ll reveal the average price for a house in the capital and give you an idea of what you can expect to pay for different property types. We’ll also outline the city’s cheapest and most expensive areas and compare the average price of a house in the capital with average house prices in the rest of the UK.
What is the average house price in London?
According to data from the Office for National Statistics (ONS), as of January 2022, the average house price in London is £510,000 — making it the most expensive place to live in the UK.
Average house prices differ depending on whether the property is a detached house, semi-detached house, terraced house, or flat, and the price also varies according to which part of London the property is in.
Read on to find out what the average house prices are for different areas and property types.
What is the average price of a detached house in London?
A detached house is classed as a standalone residential building with outside walls that are not shared with another property. This is the most expensive type of property, with the average detached house costing £1,300,000 in London.
While central London is mainly made up of flats and apartments, many detached houses can be found in areas like Bromley, which is located south-east, and Hillingdon, which is on the soon-to-be-opened Elizabeth Line and is where Heathrow Airport is located.
What is the average price of a semi-detached house in London?
A semi-detached house is a residential property that’s attached to another building by one shared wall. Usually, the layout of both houses will be mirrored on each side. The average price of a house like this in London is £743,000.
Semi-detached houses may be less common in London than flats and terraced houses, but they make up much of the housing in boroughs like Bexley in the south-east and neighbouring Havering, which is on the high-speed Crossrail network. Nearby Chadwell Heath also has lots of semi-detached houses, as does the more expensive Kingston-upon-Thames.
What is the average price of a terraced house in London?
Where a house is annexed to another house on both sides and forms part of a row of similar properties, it’s classed as a terraced house. Each house fronts onto a public road, with mid-terraces situated in the middle of the row and end-of-terrace on each end. The average price of a terraced house in London is £756,000.
The city is packed full of this type of housing, but you’ll find the most terraces in north-east London, especially in boroughs like Waltham Forest, where the streets around Blackhorse road are lined with similar-looking properties that were originally built for local factory workers but are now popular with first-time buyers.
What is the average price of a flat in London?
Often referred to as an apartment, a flat is a self-contained dwelling that forms part of a building containing other, similar residential premises. The building is divided horizontally, and to be considered a block of flats, the building must be at least two storeys. If you’re looking to buy a property in London, this is the most affordable type, with the average flat worth £522,000.
Flats make up a large part of the city centre because they save space and are capable of providing accommodation for large numbers of people in a single building.
With just under half of all Londoners living in a flat, this property type is the most popular in the capital.
Which area of London has the most expensive house prices?
Home to royals, celebrities and countless other wealthy individuals, London is the most expensive place to live in the UK. According to research by property consultants Knight Frank, around 875,000 Londoners hold assets worth more than £720,000.
The top three areas for the most expensive house prices in London
1. Knightsbridge
With banks that cater to wealthy individuals, high-end fashion shops and the world-famous department store Harrods, many of the world’s richest people live in the Knightsbridge area of London.
Much of the wealth in Knightsbridge comes from millionaires who own property in the area, where the average house price is nearly £2,900,000.
2. Kensington
As well as being the official residence of the Duke and Duchess of Cambridge, politicians, entrepreneurs and celebrities like Eric Clapton, Lakshmi Mittal, Madonna and Richard Branson live or have previously lived in Kensington.
To give you an idea of how rich you have to be to live in this area of London, houses here have amenities such as:
- Private in-house cinemas
- Underground swimming pools
- Private museums for vintage Ferraris
With that in mind, it should come as no surprise to learn that the average house price here is just over £2,300,000.
3. West Brompton
Thanks to pop culture landmarks like the Troubadour Cafe — where Bob Dylan gave his first-ever performance — and it being the home of Chelsea Football Club, West Brompton is a prestigious place to live.
Located in the expensive borough of Kensington and Chelsea, the average house price here is around £1,500,000.
Which area of London has the least expensive house prices?
If you’re in two minds about buying a house in London, don’t let the previous section put you off, as there are some much more affordable areas in the capital too.
The top three areas for the least expensive house prices
1. Barking and Dagenham
Barking and Dagenham come in first place for affordable housing year in, year out.
The borough’s excellent transport links into central London, combined with average property sales of £300,000, makes it an attractive choice for those wishing to buy property in London.
2. Bexley
Bordering Bromley to the south and Greenwich to the west, at the end of May 2022, Bexley will be served by the Elizabeth Line — which runs from Abbey Wood station to Paddington.
Improved transport links and an average house price of just over £340,000, again, make it a popular place to buy property.
3. Croydon
The large town of Croydon, in south London, has been attracting first-time buyers and families for several years.
And with easy access to central London, ever-improving amenities and low prices, it’s not hard to see why. The average price paid for a house in this borough is around £360,000.
What is the average house price in the rest of the UK?
According to the Office for National Statistics, the average house price for the whole of the UK is £274,000.
Northern Ireland is the cheapest country in the UK to buy a house, with an average price of £159,000 as of January 2022. Scotland is the second cheapest UK country for housing, with the average house price there at £183,000. In third place it’s Wales, with an average house price of £206,000, leaving England with the most expensive UK house prices. The average price of a property in England is now at a record level of £292,000.
What is the average house price in the rest of England?
To give you an idea of how house prices in London compare to other places in England, below are the top three most expensive areas in England to buy property and the top three least expensive areas.
Top three regions in England with the highest house prices
1. London
As already mentioned, at the beginning of 2022, properties sold at an average of £510,000 in the capital — meaning it is the most expensive of any region in England.
2. South East
Consisting of the counties of Buckinghamshire, Berkshire, East Sussex, Hampshire, the Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex, the South East is the second most expensive region in England, with the average house costing nearly £380,000.
3. East
With houses in the counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk costing an average of £340,000, the East of England is the third most expensive region to live in England.
Top three places in England with the lowest house prices
1. The North East
Comprising County Durham, Tyne and Wear, Northumberland and part of North Yorkshire, northeast England has the lowest property prices in the country, with the average house in the region costing just under £151,000.
2. Yorkshire and The Humber
Made up of the East Riding of Yorkshire, parts of North Yorkshire, South Yorkshire, West Yorkshire, North Lincolnshire and North East Lincolnshire, Yorkshire and The Humber is the second cheapest region to buy a house in England. The average property price here is just under £195,000.
3. The North West
Houses in the counties of Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside cost just under £200,000 on average, making northwest England the third most affordable region to buy a house.
Summary
No matter your circumstances, chances are London will have a property that meets your requirements. But having all your requirements met usually comes at a cost, which means you’re probably wondering how much a house in London will set you back.
ONS figures suggest that the average house price in the capital is £510,000. However, average house prices differ depending on property type and which part of London the property is in.
In London, the average detached house costs £1,300,000; the average semi-detached house costs £743,000, the average terraced house costs £756,000 and the average flat costs £522,000.
The top three most expensive areas in London to buy a house are Knightsbridge, where the average house price is nearly £2,900,000; Kensington, where houses cost an average of £2,300,000; and West Brompton, where the average cost of a house is around £1,500,000.
At the other end of the spectrum, the top three least expensive areas in London to buy a house are Barking and Dagenham, where average property sales are £300,000; Bexley, which has an average house price of just over £340,000; and Croydon, where the average price paid for a house is around £360,000.
The average house price for the whole of the UK is £274,000. In Northern Ireland, the average house price is £159,000. In Scotland, it’s £183,000; in Wales, it’s £206,000; and in England, the average price of a house is £292,000.
In England, the top three regions with the highest house prices are London, with an average house price of £510,000; the South East, with an average house price of £380,000; and the East, with an average house price of £340,000.
The top three places in England with the lowest house prices are The North East, with an average house price of £151,000; Yorkshire and The Humber, with an average house price of £195,000; and The North West, with an average house price of £200,000.
