London property: The East London borough with the lowest house prices in the capital

House prices have soared across the UK since the start of the coronavirus pandemic – but in one area of East London, the average home costs a little more than £300,000.

The average house price in London increased from £479,969 to £510,299 between June 2020 and June this year – a rise of 6.3 per cent – new figures from the Office of National Statistics show.

Throughout the country, asking prices on homes have shot up in the last year owing to a stamp duty holiday and an increase in demand for second homes.

The nationwide average house price is now a record £266,000 – a rise of 13.2 per cent since last June, the biggest increase since 2004.

Barking and Dagenham has seen its average house price creep just above £300,000. But this still makes it the cheapest place to buy a home in the capital, with prices well below the London average.

House prices in the borough rose by 6.8 per cent in the last year from £298,994 to £319,220, making it the cheapest place to buy in the capital behind only Bexley with an average house price of £364,502.

Other affordable areas in London include Newham with an average house price of £388,708, Croydon with £389,642, and Sutton with £394,447.

The most expensive borough to buy a home in London remains Kensington and Chelsea, despite prices falling by 4.8 per cent there.

The borough is far ahead of the next most expensive areas in the capital which are the City of Westminster with £895,150 and Camden with £878,870.

Not everywhere in London saw a rise in house prices, however.

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Although London remains one of the UK’s most expensive cities for buying a house, it saw the lowest growth in house prices over the last year.

The rise in house prices was fuelled by the suspension of stamp duty, which allowed sellers to increase their asking prices while the overall costs for buyers remained low.

The tax holiday has already ended in Scotland and Wales and will be phased out in England and Northern Ireland at the end of September.

The Bank of England has also reported that prices have been pushed up by the increased demand since the start of the pandemic and a shortage of available houses.

The Royal Institution of Chartered Surveyors added that although June had continued to see high sales, demand would likely fade as the stamp duty holiday is removed.

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