Buying in London vs Outside London: What First-Time Buyers Need to Know

If you’re a first-time buyer, one of the biggest decisions you’ll face early on is where to buy your new property. For many people, that choice comes down to a key question:

Should I buy in London, or look outside the capital?

With higher prices, competitive markets and changing work patterns, this decision isn’t as straightforward as it once was. Both options have advantages and trade-offs and the “right” choice depends on your lifestyle, finances and long-term goals.

In this guide, we break down the key differences between buying in London and buying outside London, so you can make a confident, informed decision.

Home at Last can help you every step of the way. Book a free 15-minute consultation today and let's prepare you for your homebuying journey.

1. Property Prices: The biggest difference

• Buying in London

London remains the most expensive place to buy property in the UK. While prices vary widely by borough, the reality is:

• You’ll typically get less space for your money

• Flats are far more common than houses

• Deposits and stamp duty costs can be higher (depending on price)

That said, some outer London areas and regeneration zones still offer opportunities for first-time buyers, especially when combined with affordable housing schemes.

• Buying Outside London

Outside the capital, your budget usually stretches much further. Many buyers find they can:

• Afford a larger property

• Buy a house instead of a flat

• Access better value in commuter towns or regional cities

For buyers priced out of London, moving further out can open doors much sooner.

2. Mortgage affordability & deposits

Lenders assess affordability based on income, outgoings and your credit profile but property prices play a huge role in what’s achievable.

• In London

  • You may need a larger deposit to stay within affordability limits

  • Some buyers rely on higher joint incomes

  • Mortgage payments can feel tight if rates rise

Affordable housing routes like Shared Ownership, First Homes, or Rent to Buy are commonly used by London buyers to bridge the gap.

• Outside London

  • Lower purchase prices can mean smaller deposits

  • Mortgage repayments are often more comfortable

  • You may have access to a wider range of lenders and products

For many first-time buyers, affordability feels more manageable outside the capital.

3. Lifestyle & space

• Living in London

  London offers:

  • Career opportunities

  • Excellent transport links, providing convenience

  • Culture and nightlife (if applicable)

    
    

But this often comes with compromises:

• Smaller living spaces

• Leasehold flats with service charges

• Less outdoor space

• Living Outside London

Buying outside London often means:

• More space (indoors and outdoors)

• Quieter neighbourhoods

• Better value for money

However, you may need to balance this with:

• Longer commutes

• Fewer amenities nearby

• Less frequent transport options (depending on location)

4. Commuting & hybrid working

One major shift in recent years is how people work.

• Hybrid and remote working has made buying outside London more realistic

• Many buyers now prioritise space over proximity to the office

• Commuter towns with good rail links are especially popular

If you only need to commute a few days a week, buying further out could significantly improve your quality of life.

5. Competition & negotiating power 

• London Market

  • Popular areas can still be competitive

  • Well-priced homes may receive multiple offers

  • Speed and preparation are key

    
    

• Outside London

  • In many regions, the market is calmer

  • Buyers often have more negotiating power

  • Sellers may be open to price reductions or incentives

First-time buyers with no chain can be particularly attractive to sellers outside London.

6. Long-term value & growth

London has historically shown strong long-term price growth, but this isn’t guaranteed in every area.

Outside London:

• Some regional cities and commuter towns are seeing steady growth

• Regeneration projects can drive long-term value

• Lower entry prices reduce financial risk

Rather than chasing “hot spots,” it’s often better to focus on affordability, stability and long-term suitability.

7. Which option is right for you?

• Buying in London may suit you if:

  • Your job requires regular office attendance

  • You’re comfortable with a flat or smaller space

  • You’re using affordable housing schemes

  • You value lifestyle and convenience over space

    
    

• Buying outside London may suit you if:

  • You want more space for your budget

  • You work remotely or hybrid

  • You’re planning for long-term stability

  • You want lower monthly housing costs

There’s no right or wrong answer, just what works best for you.

Buying your first home is a big decision and where you buy can shape your finances and lifestyle for years to come. Whether you choose London or look beyond it, the key is preparation, realistic budgeting, and getting the right support.

With the right guidance, homeownership may be closer than you think.

How Home at Last can help

Deciding where to buy can feel overwhelming, especially when affordability, commuting, and long-term goals are all pulling in different directions.

At Home at Last, we help first-time buyers:

• Understand what they can realistically afford in different locations

• Build a clear, personalised home-buying strategy

• Get referred to trusted mortgage brokers and professionals

If you’re unsure which route makes the most sense for you, Home at Last is here to help.

Book a free consultation today and let’s explore your options together.

Disclaimer:

This information is for general guidance only and does not constitute professional advice. The content is based on the author's research and opinions at the time of writing. Please consult with  qualified professionals before making any investment, financial, or business decisions.