Homes outside London increasingly going for more than £1 million

EVEN London’s remoter reaches are getting less affordable. While the suburbs are no stranger to expensive housing, homes are increasingly selling further out from the capital’s centre above the £1 million (S$1.69 million) mark, said real estate consultancy Knight Frank.

The average distance between London’s city centre and new high-value postcodes is 106 km, up from 90 km in 2022.

While house prices nationwide have struggled since 2022, London suburbs continue to benefit from people seeking homes close enough to the city to commute but big enough to raise a family.

“Demand has continued to fan out from London due to affordability constraints and the prevalence of working from home,” said James Cleland, head of Knight Frank’s country business, “This is driving prices higher in locations that were once less popular.” 

There were 11 new areas in England and Wales that sold a fifth of their homes for more than £1 million in at least half of the year through September 2023, according to Knight Frank. That’s up from the eight new postcodes identified by the broker in August 2022. Most are in the capital’s orbit.

Areas such as Woking and South Oxford made the list this year. Other postcodes further from London but offering picturesque landscapes, such as Ambleside in the Lake District and Broadway in the Cotswold, also reached the £1 million mark.

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In some cases that reflect changing commuting patterns since the pandemic, with people splitting their week between a property in London and another further out. BLOOMBERG