Your first home for £40,000

This time last year I moved into a flat in New Cross Gate with nine graduates and a family of mice.

The £400 monthly rent was all I could afford and every night I stuffed a towel under my bedroom door to keep out rodents.

Nine months later my salary increased and I rented an ex-local authority flat in Tufnell Park for £550 per month. My parents live in Wales and said I was lucky to afford anything more substantial than a cardboard box. "What do you expect? It's London."

One year after I moved here, the ­recession has brought mass redundancies and with it slashed house prices. Instead of chipping away at a landlord's mortgage and living with tobacco-browned walls and an oven older than me, it's time to take advantage and invest in my own property.

After three weeks of searching every London-based estate agent, I drew a shortlist of the best London properties for around £100,000. The timing was spot on: it's a "buyer's market", according to sales negotiator Sebastian Vidler at Foxtons, Islington. "It's said that prices have dropped around 10 per cent over the last year but in my experience it's more like 20 per cent." Every day, 53 new buyers register at the Islington branch of Foxtons and since the start of January, 21 properties have sold. At the Dulwich branch, 23 offers were made last week.

The influx is unsurprising. The average house price in London is £253,751 according to Halifax— 16.2 per cent less than the average price 12 months ago. "If I had the cash, I'd be buying left, right and centre," Vidler adds. He wishes he had invested his savings in property rather the pre-9/11 stock market. But he predicts house prices will soon hit rock-bottom and then start to climb.

My first find was a studio in Paddington's Westbourne Terrace in a stucco-fronted Victorian block. It was on sale for £125,000. By the time I'd called to arrange a viewing, it had been sold.

"Sold" became a standard response from the next six estate agents. The £30,000 investment flat in Palmer's Green had sold. A split-level maisonette in Edmonton was under offer.

Top of my list was a two-storey flat, minutes from Angel Tube. It had a shared garden and was listed for auction with a guide price of £80,000. By the time I telephoned Pure Acquisitions that, too, had sold (for £151,000).

Flats and houses that haven't sold fast have had their asking prices cut. Martin Ellis, chief economist at Halifax, says: "First-time buyers in particular are benefiting."

With good value properties selling fast, I viewed 10 where prices had been slashed. They are bargains but my wounds are still sore from losing my white, cottage-style two-storey flat in Angel.

It's taught me a stiff lesson — it's not a time to draw a shortlist. Instead, arrange a mortgage. Then as soon as another gem hits the market, buy. And buy fast.

Houseboat, £80,000 on the market since July

Where: King's Cross, N1.

Specification: 201 sq ft. The boat has an open-plan kitchen/sitting room, space for a double bed and lots of storage. There is a tiny bathroom with an indoor shower and toilet, wood flooring throughout, a radiator and back and front entrances in a houseboat community with two security gates.

Chain details: the owner bought the boat to renovate and hasn't had time to finish the project.

What it's like: there's parking for a bike or moped within the gates and a postal cupboard for mail. Inside is a traditional wood-burning stove, with blue and white tiling in the sitting area. The boat needs cleaning as it's unoccupied. You'll be window-to-window with neighbouring houseboats — there's plenty of community spirit. It's not just a home but a lifestyle.
Contact: Foxtons, Islington, 020 7704 5000.

Flat, £119,950 on the market since April 2008

Where: Ealing, W13.

Specification: 521 sq ft. One-bedroom fifth-floor flat with an open-plan sitting room, galley kitchen and double bedroom. Recently refurbished.

Chain details: bought as an investment.

What it's like: huge sitting room with views over West Ealing and Northfields. Glass-block feature wall connects sitting room and kitchen. Reduced from £150,000, recommended for cash buyers only.
Contact: Foxtons, Ealing, 020 8799 4550.

Flat, £112,995 on the market since September

Where: Woolwich Common, SE18.

Specification: 418 sq ft. One-bedroom flat with 17ft living room and balcony. Fitted galley kitchen with modern white units, wood-effect flooring and plenty of storage. Double bedroom with built-in cupboard and black carpet. Newly fitted bathroom. Separate storage room.

Chain details: the owner of 20 years is upsizing to a three-bedroom flat in the same building. Chain free.

What it's like: pristine condition. Panoramic views to the O2 Arena and Canary Wharf. Ex-local authority, immaculate communal space and
24-hour concierge. Service charge of £167pcm. Recently-opened DLR station at Woolwich Arsenal
allows quick travel into central London.
Contact: Half a Per Cent.com on 0871 424 0424.

Flat, £115,000 on the market since January 2008

Where: Clapham North, SW4.

Specification: 545 sq ft. One-bedroom flat on the sixth floor of a residential block. Huge sitting room (292 sq ft) with space for a dining table, entrance hall and a double bedroom with fitted wardrobe. White bathroom with charcoal tiles. The fitted kitchen is slightly dated.

Chain details: investment property that has been rented out. Chain free.

What it's like: huge space in a sought-after location with a bargain price tag. It's near Clapham North Underground on a quiet residential street. Dual aspect views over Richmond and the City from lounge and kitchen. Reduced from original asking price of £175,000. The snag? It's in an unattractive high-rise ex-local authority block. Finding a mortgage could be difficult as
it's more than five storeys high and is
a concrete build. Contact: Foxtons, Balham, 020 8772 8000.

Flat, £99,800 on and off the market since June

Where: Hampstead, NW3.

Specification: 110 sq ft. Cupboard-sized studio flat in a grand Victorian block, with an open-plan sitting room-bedroom-kitchen, cloakroom, separate toilet and shower cubicle.

Chain details: the owner needs to free
up finances for university-bound children.

What it's like: a short walk from Hampstead Underground and Hampstead Heath Silverlink station. A three-bedroom flat in the same building is on the market for £1 million.
Contact: Foxtons, Hampstead, 020 7433 6600.

Flat, £125,000 on the market since October

Where: Brixton Hill, SW2.

Specification: 249 sq ft. Studio flat in a Tudor-style quadrangle block. Large communal swimming pool and gardens. Sitting room-bedroom with raised bed and storage underneath. Fitted kitchen with hob and space for washing machine and fridge-freezer. Bathroom with shower cubicle and glass bowl sink.

Chain details: the owner is upgrading to a larger property.

What it's like: ultra-compact but well-utilised space. Laminate flooring, modern fitted bathroom. Raised double-bed in the living room allows clothes storage. Space for bookshelves and a sofa in the sitting area. The gated community is home to professionals and some families. But there's little capacity to add value to the property.
Contact: Haart, Brixton, 020 7274 2878.

Apartment, £99,950 put on the market this month

Where: Earl's Court, SW5.

Specification: 130 sq ft. Studio with sitting room-bedroom and open-plan kitchen. Separate shower room on a lower storey. Top-floor of a four-storey Victorian conversion.

Chain details: buy-to-let, chain free.

What it's like: period building, five-minute walk from Earl's Court Tube. Overlooks gardens. Recommended for cash buyers only. Mortgage could be hard to get as the bathroom is on a separate floor. Space for a small fridge but no room for an oven. Contact: Barnard Marcus, Earl's Court, on 020 7244 7337.

Flat, £109,950 on the market since November

Where: Honor Oak Park, SE23.

Specification: 385 sq ft. One-bedroom flat with sitting room, kitchen, bathroom. Recently refurbished.

Chain details: bought as an investment, the owner needs to free up capital.

What it's like: modern and neutral. Ten-minute walk to Honor Oak Park and Forest Hill train stations that go to London Bridge. The original asking price was £140,000. Contact: Foxtons, Dulwich, 020 8613 6200.

House, £95,000 (guide price) unoccupied since December

Where: Eltham, SE9.

Specification: three-bedroom, mid-terrace house, needs new carpets and work on gardens. Walk-in shower, kitchen. Access to loft.

Chain details: chain-free repossessed property
for auction.

What it's like: Walk to Kidbrooke station.
Contact: Pure Acquisitions on 01903 868597.