East London boroughs most and least expensive for first-time buyers

New data published by the Office for National Statistics (ONS) has shared the average rent and house prices for first-time buyers across Great Britain in 2024. 

We have pulled together the average price history in recent years for Havering, Barking and Dagenham, Waltham Forest, Redbridge, Tower Hamlets, and Newham. 

According to the ONS data, Barking and Dagenham ranks least expensive for average house prices for first-time buyers. 

Waltham Forest was found to have the highest average house price for first-time buyers, with Barking and Dagenham least expensive (Image: Flourish) The average cost for first-time buyers in the borough has been recorded as £315,641 in 2024, but still more than double the £156,539.67 in 2012.

The borough has remained the cheapest for people wishing to get on the property ladder since 2012. 

It is Waltham Forest however that has the highest average cost for first-time buyers at £451,941. 

The borough overtook the average house price in Redbridge in 2013, and went past Tower Hamlets towards the end of 2022 when prices in Tower Hamlets were on a decrease. 

Tower Hamlets came in close behind Waltham Forest, with its average house price at £428,524 in 2024.

According to the data, Tower Hamlets has the highest average rent price this year at £2,229 per month. 

Tower Hamlets has consistently remained the most expensive east London borough to rent in from the data going back to 2015, when the average rent price in the borough was £1,731 per month. 

Average rent prices for the borough dipped in 2022 to £1,748 before resuming a steep rise. 

Tower Hamlets has ranked as having the most expensive average rent price (Image: Flourish) The data has revealed that Havering has the lowest average rent price at £1,375 per month, with Barking and Dagenham averaging £1,425 per month. 

Nick Karamanlis, a broker at Elliot Leigh Residential, said the high rent prices in Tower Hamlets can be put down to several factors. 

He said: "Every borough in London is like its own micro market. Certain boroughs perform better than others.

"London on the whole has seen an increase in demand due to the return of people back in the offices and wanting to be within commuting distance, and boroughs like Tower Hamlets are within striking distance of both Canary Wharf and the City.

"Lettings prices have spiralled across London as a whole. Again, Tower Hamlets' proximity and transport links has been a popular spot and demand is more than outweighing supply."

Saul Kara, from Alexander David Property, said the figures from Tower Hamlets did not surprise him. 

He said: "I am not surprised in the slightest that Tower Hamlets is one of the most expensive boroughs in London.

"Since opening our office in Roman Road over ten years ago, we have found the vast majority of our transactions to be lettings.

"I think this is mainly down to the fact that this is an area that young people want to buy in, and they simply cannot afford it.

"When tenants move on from our properties, to buy a place of their own, it is very common for them to venture further afield east. Leyton and Forest Gate seem to be popular with the first time buyers."

We contacted Tower Hamlets Council and Waltham Forest Council for their comments on the data.

Councillor Ahsan Khan, deputy leader and cabinet member for housing and regeneration in Waltham Forest, said the borough is facing the housing crisis "head on".

He said that in the last decade, the authority has built more than 9,000 homes, of which 2,916 of which are 'affordable'.

Cllr Khan also said the borough exceeded the London average against housing targets since 2011 and 35 per cent of homes built are at either intermediate or social rent.

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“Based on the recommendations of the Affordable Housing Commission, our new housing strategy continues to tackle the root causes of the housing crisis and includes specific priorities for increasing the supply of housing and making renting an attractive and secure long-term measure," Cllr Khan added.

"Our new Housing Compact also outlines our ambitions for affordable housing in partnership with over 30 local housing associations.”

Tower Hamlets Council did not provide a comment.