The number of millionaire postcodes in London has risen again in 2022, with the average house price in nearly half of the capital’s districts now over £1 million.
Six new areas broke through the £1million barrier this year, according to agent Hamptons’ analysis of average house prices across London.
This means 41 per cent — or 113 — of the capital’s 274 postcode districts are now £1million-plus areas, up from 24 per cent a decade ago.
The data shows how millionaire neighbourhoods are now spreading out from Zone 1, where the average house in every area has cost at least £1 million since 2017, to new postcodes in Zones 3 to 6.
However, two of this year’s new entrants are in Zone 2, in the east London borough of Tower Hamlets.
One of the biggest jumps was seen in Bethnal Green, where the average house price rose from £894,580 in 2021, to £1.03 million in 2022.
In the former dockland area of Wapping the average house has reached £1.09 million, up from £972,840 in 2021.
These postcodes join other east London areas such as Hackney’s Lower Clapton and Victoria Park which passed the £1m mark in 2021.
The rest of the new £1million neighbourhoods list is dominated by outer London postcodes such as Acton (average house price £1.04 million) and West Ealing (£1.05 million) in west London, areas popular with families looking for more space.
According to local agents, prices in West Ealing have shot up due to its proximity to the new Crossrail station, creating strong interest in areas like ‘The Draytons’, an area of quiet terraced streets with decent-sized gardens near good schools.
According to Paul Daniel, Senior Sales Manager at Hamptons’ Ealing branch, these streets were previously not particularly sought after but in the last 18 months, this has all changed.
“The Drayton houses are conventional mid-terrace properties, that all look very similar from the outside, but vary considerably on the inside with different layouts. We have sold six houses on these roads this year and over a 15 months time period we saw prices increase by 13 per cent.”
In the north west suburb of Cricklewood, house prices have risen to £1.02 million up from £931,470 in 2021.
Further out the postcode of Northwood in Hillingdon, on the Hertfordshire border, is London’s sixth entrant to the £1 million club, with average house prices of £1.02 million.
New prime areas
Hamptons’ data also showed how postcodes that entered into the £1 million-plus group a decade ago are now either well established as prime London areas or close to it.
These include Kentish Town in Camden, where the average house now costs £1.8 million, up from £885,960 in 2011. In Hammersmith, prices have soared from £880,190 in 2011 to £1.4 million today.
Where will the next £1million neighbourhoods be?
According to Hamptons’ senior analyst David Fell, it is unlikely that many new neighbourhoods would join the seven-figure club next year, given the low expectations of price growth.
He added: “But the average house in Harlesden, Greenwich, Tooting Bec and Brixton Hill is within touching distance of £1m so could quite easily tip over.
“We’re forecasting that it’ll be 2024 before prices rise in London again, led by more expensive central areas of the capital which probably means greater growth in the numbers of £2m and £5m neighbourhoods in comparison to new £1m places.”
