Why fewer million-pound markets were created in 2024

Research by Knight Frank reveals that fewer million-pound property market postcodes were created in 2024 due to high mortgage costs and lower house prices. To qualify as a “million-pound market,” at least 20% of property sales must surpass £1 million in two quarters of the year. Only three new areas—Cambridge (CB3), Chichester (PO18), and Winchelsea (TN36)—met the criteria in 2024, compared to 11 locations in 2023.

Tom Bill, Knight Frank’s head of UK residential research, attributes the decline to reduced demand fueled by post-2022 higher borrowing costs and a shift in house price growth to regions with less-stretched affordability, such as North West England. Coastal areas remain in demand as buyers reassess work-life balance, with two of the three new postcodes located near the sea.

Knight Frank anticipates more £1 million markets in 2025, with a projected 2.5% UK house price growth, though this depends on the upcoming Spring Statement.