Average property prices soar by 700 per cent in two decades. A new report reveals house prices in the borough of Hackney have shot up by an average of £531,000 over the last two decades
East London’s Hackney has seen the steepest price growth in house prices in London over the past 20 years.
Property prices in the borough have soared by 702 per cent, from £75,000 in 1996 to more than £605,000 in 2016, according to a new report by Lloyds Bank.
The average house price was 3.3 times the amount of average annual salaries in 1996, homes in the area now cost a staggering 14.2 times more than the average London wage.
A story of transformation
The borough of Hackney stretches from Shoreditch to Upper Clapton. Over the past two decades it has been transformed from one of London’s least-loved boroughs to one of its most desirable.
It is a diverse part of London, with new-build flats cropping up alongside the grand Georgian and Victorian houses that are typical of the area, and commonly turned into flats.
Studio flats start from as little £150,000, but these are a rare find as small one-bedroom apartments are typically priced upwards from £250,000. Meanwhile, three-bedroom flats in Shoreditch can now cost anywhere up to £4.25 million.
If there is one word that sums up the Hackney of today, it’s ‘trendy’. “Hackney is a very artistic and creative place,” says estate agent Jay Jethwa, from the local branch of Winkworth.
London’s first luxury outlet shopping district, Hackney Walk along Morning Lane, brings tourists to Hackney Central, with branches of Burberry, Aquascutum, Pringle, Nike, Joseph and Matches, some housed in glamorously revamped golden railway arches designed by starchitect David Adjaye.
In Dalston, a wave of regeneration has spawned community gardens, fringe theatre, more restaurants and late-night bars.
Neighbouring Stoke Newington is home to a Whole Foods organic supermarket, a controversial addition to the area that initially received a mixed response from locals on the grounds that it is part of a chain.
In 2006, Clapton was known as ‘murder mile’, following a series of shootings in the area. Now, gentrification has brought coffee shops and delis to join the Caribbean supermarkets and Indian restaurants, and on sunny days Hackney Downs is packed with sunbathers. It was recently named as one of the top 10 property hotspots of the decade, with a 10-year rise of 142 per cent taking average asking prices in the area to £640,000.
Over the past two decades house prices across London have increased by an average of 450 per cent. This growth has been largely driven by prime central London areas including Kensington and Chelsea and Westminster.
However, price growth in London’s outer boroughs, such as Barking and Dagenham, Greenwich and Brent have risen faster over the past few years.
House prices in England and Wales have risen by a significantly lower 290 per cent over the same time period. This is traditionally to be expected, however 2016 ended with the average UK house price rising by 7.7 per cent to £236,000, compared to 7.5 per cent in London.
Nevertheless, the average cost of buying a home in London is still more than double the nationwide average, at £483,000