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How to buy a new-build in London under £400,000

Buying a new-build home in London for under £400,000 is far more achievable than many first time buyers realise. 

Although London’s property market is competitive, Shared Ownership makes new-build apartments more affordable by reducing the deposit you need and with more manageable monthly payments.  

Benefits of buying a new-build 

New-build homes are in high demand and offer advantages that can reduce long‑term expenses and improve day‑to‑day living: 

• Energy efficiency: New-build properties often have better insulation and modern appliances help keep utility bills low. 
• Warranties: Peabody homes come with a two‑year warranty, offering reassurance and limiting early repair costs. 
• Modern layouts: Features like open‑plan living, integrated appliances, private balconies, communal gardens and on site amenities appeal to many buyers. 

Buying a new-build through Shared Ownership 

Shared Ownership is an effective route for buying a new-build in London under £400,000.  

Instead of buying the full value of the property, you purchase a share (from 25%-75%) and pay subsidised rent on the part you don’t own. Over time you can buy additional shares through staircasing until you own 100%.

Eligibility in London includes: 

• Household income under £90,000.
• Being a first time buyer or unable to buy on the open market.
• Meeting residency and financial criteria.

Example (Dagenham Green two bed): 

• Full value: £340,000.
• 30% share: £102,000.
• 10% deposit: £10,200.
• Total monthly cost (mortgage + rent + service charge): approx. £1,291.

New-build developments in London under £400,000 

Several Peabody New Homes developments offer properties within this price range through Shared Ownership or private sale: 

Dagenham Green (RM9) 

You can choose from one and two bed homes at Dagenham Green starting from £85,500 for a 30% share (full values from £285,000).  

Deposits begin at just £8,550, and each home comes with a private balcony and a carbon‑neutral energy supply, along with new green spaces and community amenities on the way. 

North Gate Park (N15, Zone 3) 

One bed homes at North Gate Park start from £96,875 for a 25% share (full value £387,500).  

The homes are set around a three-acre landscaped garden and come with a concierge service, plus great transport connections straight into King’s Cross. 

Lombard Square (SE28) 

Finally, Lombard Square in Plumstead has a range of new-build homes under £400,000 through Shared Ownership. One bed apartments start from £99,999 for a 30% share (full value £330,000), with deposits from £9,900.  

Homes here come with private outdoor space, integrated appliances and access to a concierge. Both Plumstead and Woolwich stations are close by for fast Elizabeth Line connections.

Browse more new-builds from Peabody New Homes 

If you’re ready to explore your options, you can browse all of our available homes on our find a home page.  

Whether you’re just starting your search or narrowing down the developments that feel right for you, you’ll find a full range of new-build and Shared Ownership properties to suit different budgets, locations and lifestyles, all in one place. 

Attend the London Home Show

Tickets for the London Home Show are free, but visitors must register in advance to attend. For more information, or to reserve your place at the capital’s no.1 first time buyer event, please visit the event page.

Share to Buy lists thousands of affordable properties across the country, including those available through Shared Ownership, Rent to Buy, and Discount Market Sale. Learn more about the different buying and rental schemes available today.