Once considered areas of deprivation, Herne Hill in south London, Hove, by Brighton, and Willesden in north London, have shifted from the cheapest of English postcodes to the most expensive.
Between 1995 and 2014, these three Victorian, inner city postcode districts, saw prices rise more quickly than the national average and have moved from languishing in the bottom 15pc of postcodes by price to sitting in the top 15pc.
Esher is now the priciest, non-London postcode, while the capital accounts for the 37 most expensive postcodes in England.
“Over the past 20 years we have seen many inner city areas transformed from being among the least desirable areas to some of the most expensive. Even a decade ago, someone looking to start a family in Hackney, Didsbury or Hove would have moved out to more suburban areas," said Paul Creffield, managing director of London and Premier, Countrywide plc.
"Improving inner city schools, falling crime rates and the conversion of derelict industrial buildings into homes have served to stem this outward drift, resulting in the creation of more balanced, less transitory communities."
He added: “The fringes of the most expensive areas in London are now increasingly being considered prime. In a reversal of the 1970s and 1980s, house prices in areas such as, Notting Hill and Fulham, have risen much faster than in garden suburbs such as, Clapham and Ealing, which had previously been among the most sought after areas in the Capital.”
This news comes as Knight Frank reports that prices in prime central London have stalled for the first time in four years.