The UK now has three new £1 million postcodes in the last year, with areas in Cambridge, Chichester, and Winchelsea joining the club.
At least 20% of house sales in the postcodes of CB3, PO18, and TN36 were above £1 million in two or more quarters in the year to September 2024, new research by Knight Frank found.
The CB3 postcode in Cambridge contains much of the west side of the River Cam and includes the idyllic villages of Girton and Grantchester.
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The Chichester postcode of PO18 comprises much of the countryside north of the city and includes parts of the South Downs national park.
The third new £1 million postcode is Winchelsea’s TN36 which is made up of the town of Winchelsea, as well as its beach.
The postcodes in Chichester and Winchelsea are close to the sea, making them a big draw to the area, Hamish Humfrey, head of national waterfront at Knight Frank said.
“The enduring appeal of waterfront living has significantly bolstered property values in areas like Chichester and Winchelsea,” he explained.
Humfrey also cited the relative proximity to London as a factor in their appeal as they “provide an accessible retreat from urban life without compromising convenience”.
Why has the growth of £1 million postcodes slowed?
While there was a net gain in the number of £1 million postcodes in 2024, the three new areas added to the list is small in comparison to the number added in previous years.
For example, 2023 saw 11 new £1 million postcodes in the UK with areas in the Lake District, South Oxford, and Suffolk being added to the club alongside many others.
Analysts at Knight Frank believe this is in part due to mortgage rates being much lower in 2023 as demand in that year was underpinned by sub-3% mortgage offers that pre-dated the mini-Budget in September 2022.
But 2024 saw mortgage rates that were upwards of 4%, making the cost of buying a house in a £1 million postcode more difficult.
Another reason for the slowdown is that house price growth has begun to move away from London and south-east England, areas of the country where the £1 million threshold is closest to being crossed.
Where are the upcoming £1 million postcodes?
While some locations did not become £1 million postcodes because fewer than 20% of purchases were over £1 million, they do provide an indication of where in the UK could be next to join the club.
The UK location outside of central London that saw the biggest jump in £1 million-plus sales was Hindhead (GU26), where the figure climbed from 15% to 25%.
The area is followed by Sevenoaks (TN14), which went from 9% to 16%, and Hitchin (SG4), which rose from 3% to 10%.
Knight Frank expects more £1 million property markets to be created in the next year as house prices continue to grow – possibly by as much as 2.5% over the year ahead.
