New research by Which? Mortgage Advisers has unveiled the London boroughs with the most new million-pound postcodes.
Wandsworth is the borough which saw the highest number of new ‘million-pound postcodes’ – postcode areas in which two or more properties were sold for £1m or more – in the past year.
Of the 10,007 postcodes in Wandsworth, 284 (or 2.8%) saw two or more homes sell for £1m or above for the first time in 2014/15, adding to a tally of 715 such postcodes already in the borough.
Despite the rise in properties selling for over £1m in the borough, the average house price in Wandsworth is a more modest £540,000.
Find out more: looking for an area on the up? Check out our guide to uncovering property hotspots
Million-pound property sales map
The interactive map below shows each time a property in London or the south-east has sold for £1m or more between 1995 and 2015. (This may not work in earlier versions of Internet Explorer. If the map doesn’t load, try reopening in Firefox or Chrome.)
The London boroughs on the up
In our analysis of a year’s worth of Land Registry data, Wandsworth was closely followed by Richmond upon Thames (205 new million-pound postcodes – or 2.7% of the total), with Hammersmith and Fulham next (183 postcodes, 2.6%).
Hackney and Kensington and Chelsea were joint fourth, each with 2% of their postcodes (respectively 130 and 171) breaking the £1m barrier.
While these boroughs saw the largest numbers of postcodes passing the milestone for the first time, they weren’t always the boroughs with the most million-pound property sales overall. In Westminster, for instance, over 571 properties were sold across the year for £1m or more, compared with 392 in Wandsworth. Some of the postcode areas in Westminster, Hammersmith and Fulham, and Wandsworth (namely SW6, W2, SW1P, SW11, W6 and SW18) saw more than 100 individual sales above £1m in each.
Outside London, Elmbridge in Surrey saw the highest proportion of new million-pound postcodes in the year, with 1.8% (110) of its postcodes joining the category.
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First-time buyers shouldn’t feel disheartened
Despite the influx of million-pound properties, there are London boroughs that remain affordable. Hounslow, for example, ranked 18th in our analysis with 0.6% of its postcodes passing the £1m mark for the first time – but the median house price in the borough is a relatively modest £326,000. Lewisham – which was 21st, with 39 new million-pound postcodes – has an average house price of £330,000.
These boroughs both had lower median house prices than London as a whole, where properties sold for £380,000 on average over the same period.
Barking and Dagenham was the only borough in London with all of its postcodes yet to break through the million-pound barrier.
David Blake at Which? Mortgage Advisers said: ‘It can be eye-watering to see how many postcodes in London are breaking through the million-pound barrier, but first-time buyers and those who want to climb up the property ladder shouldn’t feel disheartened.
‘Speaking with an independent mortgage adviser will help to set out your options and identify any funding support. For current mortgage holders, it’s important to keep an eye on your property’s value and regularly review your mortgage deal to ensure you’re making the most of your investment.’
Find out more: for impartial advice based on your personal circumstances, call Which? Mortgage Advisers for a free consultation on 0808 252 7987
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