Hackney has seen the steepest growth in house prices in the capital over the past 20 years, according to new research from Lloyds Bank.
The average house price in Hackney rocketed 702% in the last two decades, from £75,569 in 1996 to £606,269 in 2016, a rise of £530,700. That compares to an average increase of almost 450% for London and 290% in England and Wales over the same period.
According to the report, released on Friday, the sharp rise in Hackney has seen it shoot up the list of house price increases for London boroughs, from 28th in 1996 to 12th in 2016.
Debby Blow, sales manager of Keatons, a leading Hackney estate agent, told EastLondonLines: “We saw massive regeneration growth between 2010 and 2012 because of the Olympics. We expected the post-Olympic effect to come. By 2010, our house prices were massively increasing because the demand was outstripping the supply. With all the regeneration to do with the Olympics, others to do with the schooling, transport and infrastructure, the borough has changed so much. We continued to see rises in 2013 to 2016, when most of East London continue to rise too.”
She added: “It is not just about the market price increasing, but also about the area changing. Hackney is becoming a wonderful area in East London where people love to live as a couple or an individual. It’s a huge community with green space and grand architecture. Not many people have to move away. ”
She also mentioned the Brexit effect on the house prices. “Post-Brexit is to come at this stage, we have very much seen the market far more stable in house prices, more choices, fewer first time buyers. We’ve got a huge variety of buyers, and will have more decent ones. We will see what may happen in the next couple of years. At the moment, there is no reason why I would see the prices fall. Certainly over the next 6 months, there will be decent stable market on price, giving the opportunity for the first time buyers to get on the ladder.”
Akash, salesman from Felicity J Lord in Hackney, said house prices seem to remain stable after the Brexit vote. “With the Olympics, we saw the growth in house prices. Also, we saw how much the local council has invested in the infrastructure. At this moment, it’s the normal buyers’ market. We can’t see any changes. We are not facing much competition from other buyers.. It is still a fantastic place to live.”
Andrew Mason, Lloyds Bank Mortgage Director commented in the report: “The last 20 years have seen substantial growth in house prices in London, especially in the most affluent areas of the city. The boom years between 1996 and 2008 saw the gap widening between house prices at the top end of the market and those in London’s inner and outer boroughs, creating two distinct markets – ‘Prime’ and ‘Mainstream’.”
He added: “However, whilst those boroughs at the top end have pulled away considerably from the rest of London and the country in terms of house prices, improved transport links to the city from the outer boroughs and the 2012 Olympic Games has meant that the boroughs directly benefitting from these have seen house price growth outpace the Prime areas in recent years.”
You can follow Jane Zhou on Twitter @JaneChou1223.