Three fantastic areas for first-time buyer bargains

Life has just got that bit harder for first-time buyers trying to step on to London's housing market.

- Cathy Hawker

From April 1, the stamp duty threshold falls from £425,000 to £300,000, well below a first-time buyer's average spend in London. Added to that, the price of a home eligible for first-time property relief falls from £625,000 to £500,000. Pay more and you'll have to dig deep for standard stamp duty rates. It's an April Fool's joke that's no laughing matter.

But some of the areas where you can still find a property at about £500,000 may surprise you. "London is home to a notoriously competitive property market, particularly for first-time buyers," says Matt Thompson, head of sales at Chestertons. "While the average property price nears the £500,000 mark, the capital boasts a number of options below this price point."

According to Hamptons data, the average first-time buyer in greater London pays £554,050. That figure has fallen very marginally over the past 12 months, but has increased 83 per cent since 2008. It covers a wide range.

First-time buyers in Kensington and Chelsea splash out £1,339,540, presumably with the Bank of Mum and Dad doing some heavy lifting, while at the other end of the scale, those in Barking and Dagenham, Croydon and Bexley London's three most affordable boroughs pay £346,550, £399,830 and £400,660 respectively.

Here are some two-bedroom options in Zone 2 and 3 that fit the £500,000 bill.

CANARY WHARF, E14