Mortgage broker, Henry Dannell, recently conducted a market analysis which reveals the most expensive postcode districts in London.

As England’s capital city, it is no surprise that properties in London have some of the UK’s highest and most durable house prices.

Henry Dannell’s research shows the capital’s average price has increased from £542,344 in 2021 to £579,014 in 2022. That is the equivalent of a £36,669 increase of 7%.

Extraordinary prices in the city

In 2022, 6.8% of all available homes on the London market were valued at over £1 million, an increase of 0.4% since last year

The W1, postcode, which covers Westminster, Mayfair, and Soho has experienced house price growth of 4.7%. House prices under this postcode are 278% higher than London’s overall average.

The SW7 postcode area, which includes Knightsbridge and South Kensington, has average house prices worth £2.1 million. This is 265% higher than London’s overall average asking price. 

Average asking prices also hit £1 million in SW3 (£1.8 million), WC2 (£1.6 million), SW1 (£1.5 million), SW10 (£1.3 million), NW8 (£1.25 million), W11 (£1.2 million), and EC2 (£1.1 million).

Director of Henry Dannell, Geoff Garrett, commented: “Not so long ago, a budget of £1 million would’ve made London’s housing market your playground. But now we have large swathes of the city where it barely even scratches the surface. In these areas of high prices, it’s important to consider what it means for long-term demographic evolution.”

“With an average price of more than £2 million in some areas, the majority of buyers are prevented from purchasing. As the potential audience is small, this will undoubtedly lead to a more opportunistic demographic of buyers, often from overseas and planning on spending very little time residing in their newly acquired London property. So, while it’s great for London’s housing market to be so valuable, it is unquestionably going to change the historic makeup of these areas. Whether this is for better or worse remains to be seen.”