This guide explains everything first-time buyers need to know: from how much it costs to buy an apartment in London to new build developments, Shared Ownership, and essential tips to avoid costly mistakes.
Saving for a deposit for an apartment in London
For most first-time buyers, saving for a deposit is the biggest hurdle when looking to buy an apartment in London. With high property prices, increasingly high rents, and the rising cost of living, it can feel like an uphill climb, but there are ways to make it more manageable.
How much do you need to buy an apartment in London?
Typically, you’ll need a 10 per cent to 20 per cent deposit based on the full market value of the property. For example:
£400,000 apartment → 10 per cent deposit = £40,000
£600,000 apartment → 10 per cent deposit = £60,000
This is often out of reach for many, especially when paying high London rents – but that’s where Shared Ownership can help.
Shared Ownership = smaller deposit
If you’re eligible for Shared Ownership, you can buy a 25 per cent- 75 per cent share of a new-build apartment rather than the full value upfront.
Example:
Apartment full price: £500,000
25 per cent share = £125,000
10 per cent deposit on £125,000 = £12,500
This means you can get on the property ladder with a much smaller deposit, making homeownership more realistic sooner.
Clement, 28, a Shared Ownership buyer at Macfarlane Place in White City explains how his family introduced him to the homebuying scheme:
“My mum suggested it, and after speaking with my sisters [who had previously purchased using Shared Ownership], it made complete sense. At first, I thought I’d just have to keep renting because buying in London felt completely out of reach. But the more I investigated shared ownership, the more I realised it was the best option. It allowed me to get onto the property ladder in an area I love, and I plan to staircase in time so that I can own it outright.”
Where to buy an apartment in London
London offers a huge variety of neighbourhoods to choose from, each with its own unique character, lifestyle, and price point.
If you’re looking for value and regeneration potential, areas like Newham, Barking & Dagenham, and Thamesmead are worth exploring.
These locations are seeing significant investment and offer lower entry prices compared to more central postcodes.
For example, Shared Ownership homes in West Ham Village and the upcoming Dagenham Green provide access to green spaces, new infrastructure, and quick transport links into central London – ideal for first-time buyers on a tighter budget.
Well connected central locations
If you’re leaning toward a more central or well-established location, there are options too – though prices tend to be higher.
Areas like Islington, Notting Hill, and Wandsworth offer a premium lifestyle with excellent connectivity, boutique shops, and a vibrant social scene.
Peabody’s developments such as City Angel in EC1 and The Auria in W10 cater to those wanting contemporary apartments in sought-after zones.
South and East London
South and East London also strike a good balance between affordability and lifestyle. Places like Deptford, Southwark, and Greenwich combine culture, commuting ease, and riverside living.
Developments in these boroughs including Frankham Walk, St Olave’s, and Lombard Square are particularly appealing for first-time buyers wanting more space, access to green areas, and modern homes with long-term value.
Whether you’re looking for a starter studio or a spacious two-bed with outdoor space, there’s a wide range of neighbourhoods across London that cater to different lifestyles, budgets, and buying goals.
Buy a flat in London through Shared Ownership
If saving for a full deposit feels out of reach, Shared Ownership can offer a more affordable route onto the London property ladder.
Rather than buying 100 per cent of a home upfront, Shared Ownership lets you purchase a 25 per cent to 75 per cent share of a property and pay rent on the remainder. This dramatically reduces the size of the deposit you need because it’s based on your share, not the full market value.
It’s especially useful in London, and with this model, you can become a homeowner with a lower upfront cost, then gradually increase your share over time through a process called staircasing, potentially owning the home outright one day.
Another major benefit is that Shared Ownership properties are often new builds, offering modern layouts, energy-efficient design, and great amenities.
First-time buyers: New build apartments for sale in London
New build apartments are a popular choice for first-time buyers in London – and for good reason. They offer modern design, energy efficiency, and peace of mind with building warranties.
Plus, many developments come with lifestyle perks such as concierge services, residents’ gyms, rooftop gardens, and co-working spaces.
One of the biggest advantages of buying a new build is the ease of moving in – everything is brand new, meaning less maintenance and no immediate renovations. For Shared Ownership buyers in particular, new builds offer a streamlined, low-hassle route onto the property ladder.
New build apartments from Peabody
Peabody, one of London’s most established housing providers, offers a wide range of thoughtfully designed new build developments across the capital.
Whether you’re drawn to City Angel in Islington for its spa-style amenities and proximity to the City, or The Auria in Notting Hill for its West London charm, there’s a wide selection of locations and property types.
East London buyers might explore West Ham Village or Fish Island Point, while St Olave’s in Southwark and Frankham Walk in Deptford offer a strong mix of community, green space, and connectivity.
Find out more about our Shared Ownership developments at Peabody New Homes