Why east London is cheap

[silentray]

Hi

I am looking to buy my first property in London. I found east London is much cheaper than the rest of London. Why is that? Someone told me that the property by the river is cheap because they will be dangerous if Thames water level raises.

Thanks.

[FazLondon]

Hi

This is a very interesting part of London and prices obviously vary greatly in different parts.. Although the effect the actual Olympic games will have on London will be minimal, the regeneration that comes with it will surely push prices upward.

East London was the subject of 57 successive nights of bombing (the Blitz) as it was the centre for war related imports. The line of the Thames was the biggest target, hundreds of people were killed on the first night and bombing was persistent from September 1940 through to May 1941. This obviously had a disastrous effect on the infrastructure and the properties rebuilt in these parts are generally smaller and roads are tighter than other parts in London.

I think this is the main reason East London is regarded as relatively 'cheaper' than other parts of London, although you cant just say East London is cheap as a whole. There are 2 bed flats selling in Wapping (E1) that can set you back as much as £3,000,000, possibly more. In contrast, there are areas such as Plaistow where I just sold a 2 bedroom flat worth £165,000 with a 20% discount. Massive difference, and the distance is merely a few miles.

However, I think the lower priced parts of East London are the best place to invest at the moment. Low capital values + high rentals = great yields. And loads of repossessions, absent freeholders, etc, mean great opportunities for cash purchasers and end BMV buyers alike!

Best regards,

Faz

[flyingfido]

Faz,

Interesting post. I've been wondering about East London too. Just bought my first place in Kennington but eventually want to get a second place in London (years away mind).

Any idea how to find out about repossessions?

John