Five outer London postcodes becoming new property hotspots as London returners search for the best of both

© Propcast Propcast heatmap Feb23.jpg

London’s outer fringes have seen a surge in homebuyer activity as lockdown leavers return to find the best of both worlds.

Market analysts Propcast found that the 10 hottest property markets across the capital last month were outside Zone 2, with buyers willing to accept longer commutes for countryside access and better-value housing than that found in inner London areas.

Incidentally, five areas where homes were least likely to sell were all within the tight inner-London confines of Zone 1.

Marc von Grundherr, managing director of estate agents Benham and Reeves, said many people who left the capital at the height of the Covid-19 crisis were looking to re-establish themselves without losing all the benefits of the commuter belt.

“The pandemic-inspired exodus of London buyers has been cooling for some time and it’s fair to say that the novelty has worn off, with this ripple effect of market activity now in reverse,” he said. “This has been driven by a return to normality, both socially and within the workplace, with many buyers now keen to return to the convenience that London living provides.

“Of course, while the current economic picture is far better than many predicted, the high cost of home ownership, along with the increased cost of borrowing, is still having an influence on where this interest is currently being focussed. As a result, it is the slightly more peripheral areas of the capital, particularly to the east, that are seeing the highest levels of market activity due to the more affordable property values they offer.”

London’s five hottest property markets

Postcode

Percentage of listed properties sold or under offer in February 2023

DA18, Belvedere

75

RM7, Romford

61

RM9, Dagenham

60

E11, Wanstead

59

SM5, Carshalton

59

Source: Propcast

Belvedere (DA18), in south-east London, had the highest proportion of listed properties under offer or

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