The south London district was revealed as the most desirable location in the capital in a list published today in the Sunday Times.
Up and coming areas including Walthamstow, Canonbury and Muswell Hill also made this year’s top 10 list, according to the newspaper’s Best Places to Live Guide 2017.
Of Peckham, the paper writes: “The area’s story in a nutshell - the swift transformation of a crime-ridden, no-go patch of south London into a hipster rival to Dalston, and latterly a middle-class hotspot.”
It said the transformation of the area, where the average price of a family home is almost £1m, was thanks to popular grime DJs, a thriving Women’s Institute and rooftop cinema club the Bussey building.
According to the guide, Walthamstow has graduated from “an end-of-the-Tube punchline to an aspirational address”, while Canonbury has become “the Islington of the popular imagination and property-porn fantasy”.
The guide said Muswell Hill had become popular for its high-achieving schools and good independent shops on the high street.
The City was also featured in list despite the guide saying it was “not really thought of as a place to linger”.
It said the Square Mile had come to life in recent years thanks to “bars, restaurants, gyms and shopping centres springing up to serve cash-rich, time-poor corporate types”.
The 10 best places to live in London 2017
The suburb of Teddington also made the top 10 with the guide saying it was now considered to be a “good compromise between the capital and the countryside”.
Published annually, the guide combines data such as crime rates, house prices and school performance with local knowledge.
This weekend, it also revealed that Bristol had topped the list of the best places to live in Britain overall.
As well as Peckham, the regional winners for this year's guide were published as Ballycastle (Northern Ireland); Cowbridge (Wales); Frome (South West); Knutsford (North West); Newcastle Quayside (North and North East); North Berwick (Scotland); Shipston-on-Stour (Midlands); Wadhurst (South East) and Woodbridge (East).