Eltham,in Greenwich,offers houses below the London average (Picture: Getty Images)
For many first-time buyers in London,owning a home feels like a distant dream thanks to the city’s notoriously high property prices.
According to the latest figures from the Office for National Statistics (ONS),average house prices in London currently stand at £566,000 — far higher than the UK’s average of £273,000.
However,there is a silver lining: many postcodes in the capital offer entire terraced houses priced at less than £500,000.
Here,we highlight six affordable London areas to consider purchasing a terraced house in 2025.
Edmonton has emerged as a standout for affordability in North London,offering terraced homes comfortably below the £500,000 mark.
Located within the London Borough of Enfield,Edmonton benefits from a strategic location approximately nine miles from Central London,with direct links via the Overground and National Rail services taking roughly half an hour.
Edmonton is connected to Central London via the Overground (Picture: Alamy Stock Photo)
This connectivity eases commutes to key employment hubs,improving its appeal to working professionals and families alike.
Recent local regeneration projects have boosted community facilities and green spaces,enhancing quality of life,and Edmonton’s vibrant local markets,schools and leisure centres contribute further to its desirability.
Affordability in this area,combined with ongoing infrastructural investments,makes it practical for first-time buyers aiming to tap into North London’s diverse economy while maintaining access to green spaces.
Average price for a terraced house: £418,264,according to Rightmove.
Feltham,located in the London Borough of Hounslow,continues to gain recognition for retaining affordability while experiencing strong price growth,a dual indicator of both demand and investment potential.
Approximately 14 miles from Central London,Feltham offers relatively easy access to Heathrow Airport and central London via rail and bus,enhancing its appeal among both residents and businesses.
Feltham is close to Heathrow Airport (Picture: Getty Images)
Local initiatives aimed at urban renewal and commercial development have contributed to price appreciation of around 5% over the past year and 3% up on the 2022 peak of £390,412,according to Rightmove.
For first-time buyers,this means purchasing not just a home but potentially benefiting from capital growth in the medium term,supporting both personal and financial stability.
Average price for a terraced house: £434,654
Positioned within the Royal Borough of Greenwich,Plumstead offers terraced homes under £500,000,standing out as a strong contender for buyers seeking tangible value in the capital’s southeast corridor.
Plumstead is an affordable alternative to other South East London postcodes (Picture: Shutterstock / Andy Sutherland)
The area,roughly nine miles from central London,has gradually benefited from improved transport links,including nearby Plumstead railway station and bus connections,facilitating commutes for working professionals.
Plumstead’s affordability,alongside community-driven amenities such as sports facilities and local markets,nurtures a growing sense of neighbourhood appeal.
Additionally,ongoing regeneration projects along the Thames Gateway corridor signal a positive trajectory in both quality of life and property desirability.
Average price for a terraced house: £445,593
Abbey Wood’s prominence as an affordable hotspot has been bolstered by substantial price growth,jumping by approximately 8% since 2022,yet it still offers terraced properties within reach of first-time buyers.
This area lies along the Elizabeth Line,which has revolutionised travel times into central London,reducing commutes and dramatically raising the area’s profile.
The Elizabeth Line has increased interest in Abbey Wood (Picture: Bloomberg via Getty Images)
The arrival of Crossrail has been a catalyst for substantial regeneration projects in Abbey Wood,including new housing developments,shopping centres and community facilities.
This transformation has attracted young professionals and families alike,making it a rapidly evolving locality that combines affordability with strong future growth prospects.
Average price for a terraced house:£421,613
Nestled within the London Borough of Bromley,Orpington and the suburb of St Mary Cray exemplify suburban affordability paired with a tranquil atmosphere.
It boasts a balance that many buyers crave: less dense living environments combined with good access to central London via frequent Southeastern rail services.
Southeastern rail services connect Orpington to Central London (Picture: Shutterstock)
Orpington is well known for its quality schools,parks like Goddington Park,and a thriving town centre with shops and restaurants.
These qualities have sustained consistent demand,yet average terraced house prices remain accessible for first-time buyers venturing into the capital’s housing market in 2025.
Average price for a terraced house: £372,122 in St Mary Cray,£449,758 in Orpington
Eltham is often celebrated for combining suburban tranquillity with affordability,a rare balance in southeast London’s property market.
Set roughly 10 miles from Central London within the Royal Borough of Greenwich,it offers a family-friendly environment supported by well-regarded schools and parks,including the historic Eltham Palace.
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Despite consistent buyer interest,average terraced house prices here remain under £500,making it viable for those looking to establish roots without compromising on community quality.
Eltham also benefits from excellent transport infrastructure,including rail links to London Bridge and Cannon Street,which cater to commuters seeking affordability outside inner London’s boundaries.
Average price for a terraced house: £491,437
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