The Ten Most Expensive Neighbourhoods in London

London property prices have always been a talking point, more so for those living in the capital’s most prestigious postcodes. Recent data from Benham and Reeves reveals that 43% of all homes listed in prime London areas over the last month have been priced at £1 million or more.

With the average London home costing close to £700,000, according to Rightmove, the capital’s top-tier neighbourhoods sit firmly in the million-pound-plus bracket, before stamp duty is even considered. Since April 2025, buying a £1 million property will set you back an additional £43,750 in tax.

This makes it more critical than ever for buyers to secure value and move swiftly and that’s precisely where property auctions can offer a unique advantage. Auctions are an increasingly popular alternative to the open market, whether you are looking to invest, buy your next home, or sell in a prime area.

So, where are London’s most expensive places to live? And what opportunities might auctions offer within these prime postcodes?

Mayfair

At the top of the list is Mayfair synonymous with luxury and history. An impressive 93% of homes listed here recently have been priced above £1 million. Past residents include Oscar Wilde and Winston Churchill, while the area is known today for its art galleries, private clubs, and peaceful squares.

Properties in Mayfair occasionally appear at auction, particularly flats with lease issues, probate sales, or development potential. This makes the auction room a rare access point in this ultra-exclusive market.

Knightsbridge

Just west of Mayfair, Knightsbridge is a beacon of prestige, with 90% of properties listed as over the £1 million mark. Famed for Harrods and luxury living, it blends opulence with tranquillity.

Auctions may occasionally offer tenanted or unmodernised flats in this area, such as this flat which is attractive to both investors and those willing to undertake a refurbishment project.

Barnes

South of the river, Barnes feels more countryside than capital. With riverside walks, wetlands and village charm, 82% of homes here now command £1 million-plus.

Belgravia

Neighbouring Knightsbridge, Belgravia boasts grand Regency townhouses and embassies galore. Nearly 80% of listings here surpass £1 million.

Auction angle: While rare, properties in Belgravia sometimes go under the hammer due to probate, leasehold complexity, or family sales, giving eagle-eyed buyers a potential edge.

Fitzrovia

This central pocket of period streets and creative energy has 71% of its homes listed as over £1 million. Despite being close to Oxford Street, it’s surprisingly peaceful.

Fitzrovia flats, especially in older mansion blocks, may be sold with short leases or as part of larger investment portfolios. This flat, which was sold back in 2023, is a newer development block and was a popular lot amongst investors due to the internal standard of the property only requiring some cosmetic updating.

Marylebone

Just next to Fitzrovia, Marylebone shares the same mix of luxury and village feel. With Bond Street nearby and Regent’s Park on the doorstep, it’s no surprise that 68% of listings are £1 million or more.

We have seen increased demand for central London lots from private buyers and investors alike. Homes in Marylebone often attract competitive bidding, especially when priced realistically. This flat in our recent May auction was so popular that it sold before the auction.

Kensington

A long-time icon of London wealth, Kensington’s elegant homes and royal connections make it highly desirable. Currently, 66% of listings here are £1 million+.

Selling in Kensington? An auction sale can attract serious cash buyers from across the UK and abroad, especially for homes with development scope or that are chain-free. This two-bedroom flat sold for £274,000 in our May Auction

Hampstead

One of the few outer zones to make the top ten, Hampstead’s village vibe and access to the Heath make it a perennial favourite. 64% of homes listed here exceed £1 million.

Properties in Hampstead, particularly period homes requiring renovation or buildings with conversion potential, can appeal at auction. This detached property, arranged to provide eight flats, was sold for an undisclosed amount before the auction.

Chelsea

Chelsea is a name that needs no introduction. It is classic London affluence. With chic boutiques and the Chelsea Flower Show on the doorstep, 63% of listings top the million mark.

At auction, Chelsea lots often generate buzz, whether it’s a studio short term rental, a long-let flat, or a commercial property such as this ground-floor retail unit, which is available and listed in our May Auction.

Holland Park

Dubbed “Millionaire’s Row”, Holland Park is home to stars (such as David and Victoria Beckham, Elton John and Ed Sheeran) and stately dwellings alike. With 60% of homes listed above £1 million, it remains a top-tier postcode.

Did you know? Properties here occasionally go to auction due to complex leaseholds or inheritance sales offering unique entry points into this high-profile area.

What About More Affordable Prime Spots?

Not every central neighbourhood breaks the bank. In places like Clapham, only 23% of homes listed were over £1 million making them prime but more accessible.

This area is popular with younger buyers and landlords and flats with modernisation needs or legal quirks often appear at more competitive prices in our catalogues. Even pieces of land have sold well in this area, such as this corner plot, which sold for £58,000 in our October ’24 Auction.

Why Consider Auctions in Prime London property?

While these areas are known for sky-high prices, auction sales often unlock value that’s not visible on the open market.

Buyers can access prime areas at more competitive prices especially when properties are unmodernised, tenanted, or sold with short leases.

Sellers can secure fast, reliable sales with committed buyers avoiding chains and lengthy negotiations.

Ready to Explore the Opportunities?

At Auction House London, you can see that we regularly feature properties from prime London areas.

Browse our upcoming auction lots to see what’s available in your favourite postcode.

And if you are thinking of selling? Contact our team for a free valuation and expert advice on the benefits of selling by auction.