New £1 Million UK Property Markets Revealed
Locations that crossed the price threshold in 2023 are further from central London than 18 months ago.
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With house prices declining in many areas last year, it’s not the most obvious time to talk about the country’s new £1 million postcodes.
However, Land Registry analysis shows there were 11 areas in England and Wales that crossed that particular threshold in 2023.
To qualify, at least 20% of sales had to be above £1 million in two or more quarters in the year to September 2023. This cannot have happened in a single quarter over the previous 12 months.
There is a wider geographical spread of locations than the last time we analysed the data in mid-2022, but common themes persist, such as how commutable or picturesque the areas are.
Eight postcodes qualified as £1 million markets in our analysis 18 months ago and were on average 56 miles from central London (Charing Cross station). This time round, the 11 locations were an average of 66 miles away. It reflects how demand has continued to fan out from London in recent years due to affordability constraints in the capital and the growing prevalence of working from home since the pandemic.
As a result of stubborn inflation and rising mortgage rates, UK annual price growth dipped to -5% in the middle of last year before strengthening so it was broadly flat by December, according to the Nationwide and Halifax indexes.
Despite this pattern, areas that saw the number of £1 million-plus property sales increase last year included several on the cusp of a 90-minute commute from London.
The list comprised Woking (GU23), Ashtead (KT21), Haywards Heath (RH17) and Berkhamsted (HP4). Meanwhile, the Mill Hill (NW7) district of London also qualified.
“Price inflation is spreading as buyers are moving one step out from traditionally fashionable areas,” said James Cleland, head of the Country business at Knight Frank. “Even though prices have come back since Covid, buyers are having to target better-value markets, which is driving prices higher in locations that were once less popular.”
Elsewhere, the OX44 area of South Oxford and Watlington (OX49) in Oxfordshire made the list.
“While OX44 provides access to top schools, the Watlington area is popular due to how commutable it is from London,” said William Kirkland, head of Knight Frank’s Oxford office. “The rise of remote working boosted demand but the flow of buyers from London has returned to its pre-pandemic level, which in Oxford was already very strong.”
Other areas now considered £1 million markets include the picturesque locations of Ambleside in Lancashire (LA22) in the Lake District National Park, Southwold (IP18) in Suffolk, Broadway (WR12) in the Cotswolds and the EX3 area of Exeter that includes Topsham.
Demand in such areas increased during the pandemic as people reassessed how and where they lived and worked, with some splitting their week between a property in London and another further out.
“Demand is high on the Exe Estuary not only because it’s on the edge of a lovely river, but also due to its proximity to the centre of Exeter and a commute of just over two hours to London so buyers feel connected” said Mark Proctor, head of Knight Frank’s south-west region. “In addition to the waterside lifestyle, another appeal is that the whole area is easily accessed without using a car due to the cycle path that runs from Topsham to Exmouth.”