The new £1 million postcodes in the UK were made public

We examine some of the most expensive regions in the UK, where homes are selling for at least £1 million

Over the past year, the UK has added three new 1 million postcodes: Winchelsea, Chichester, and Cambridge.

In the months leading up to September 2024, at least 20% of home sales in the postcodes of CB3, PO18, and TN36 were over £1 million in two or more quarters, according to recent research by Knight Frank.

Much of the west bank of the River Cam, as well as the charming villages of Girton and Grantchester, are located in Cambridge's CB3 postcode.

Chichester's PO18 postcode includes parts of the South Downs National Park and a large portion of the rural area north of the city.

TN36, which includes the town of Winchelsea and its beach, is the third new one million postcode.

Chichester and Winchelsea's postcodes are popular because they are near the sea, according to Hamish Humfrey, head of national waterfront at Knight Frank.

He clarified, "Property values in areas like Chichester and Winchelsea have been greatly bolstered by the timeless appeal of waterfront living."

One of the reasons for their popularity, according to Humfrey, is their close proximity to London, which "provides an accessible retreat from urban life without compromising convenience."

Why has the one million postcode growth slowed?

Although there was a net increase of one million postcodes in 2024, the three new regions that were added to the list pale in comparison to those that were added in prior years.

For instance, the UK saw the addition of 11 new 1 million postcodes in 2023, including places in the Lake District, South Oxford, and Suffolk, among hundreds more.

Knight Frank analysts think this is partly because demand in 2023 was supported by sub-3 percent mortgage offers that came before the mini-Budget in September 2022, which resulted in significantly lower mortgage rates that year.

The cost of purchasing a home in a one million postcode became more challenging in 2024, however, when mortgage rates rose to as high as 4 percent.

The slowdown can also be attributed to the fact that the growth in house prices has started to shift away from London and south-east England, which are the regions closest to crossing the one million mark.

The 1 million postcodes are coming, but where are they?

Although less than 20% of purchases were over one million, some locations did not become one million postcodes; however, they do give an idea of where in the UK might be the next to join the club.

Hindhead (GU26), a UK location outside of central London, experienced the largest increase in sales of one million or more, rising from 15% to 25%.

Next in line are Hitchin (SG4), which increased from 3 percent to 10 percent, and Sevenoaks (TN14), which increased from 9 percent to 16 percent.

According to Knight Frank, more than one million real estate markets will be established in the upcoming year as home prices continue to rise, potentially by up to 2.5 percent.