I would like to receive the latest property news and guides, every Wednesday by email

register with your social account or click here to log in

You already have an account. Please log in

House prices in Hackney have risen more than in any other local authority in the UK in the past 20 years, according to a new report.

Since 1998, prices in the east London borough have increased by 568 per cent, pushing the average cost of a flat above half a million pounds to £515,600.

The report by estate agent Cushman & Wakefield attributed the rise to an influx of new developments and boutique businesses, creating a “vibrant and buzzy” feel and raising prices faster than areas that were traditionally more expensive

“The 568 per cent increase is not just the highest growth rate of any London borough, but also any other local authority in England,” says Lee Layton, associate director at Cushman & Wakefield.

What it costs Average price of a flat in Hackney: £515,615

£515,615 Average price of a terraced house in Hackney: £1,068,696

“Price increases have greatly outstripped even ‘prime’ London boroughs such as Kensington & Chelsea, where prices rose ‘just’ 421 per cent during the same period.”

ALL CHANGE IN HACKNEY

Hackney is now the 11th most expensive borough in London, compared to being the 28th most expensive in 1998 — the biggest price shift in London, say estate agent Currells.

"No other east London borough has made the move from being below the London average to above it. Twenty years ago, the average property price in Hackney was 15 per cent below the average for London, today it is 13 per cent higher," says Nicola Almond, Currells head of research.

The pace of house price growth in Hackney accelerated as the borough’s reputation for shopping, nightlife and restaurants spread beyond its long-term residents.

"The spending power of new residents (tenants and owners) has fuelled numerous independent start-ups, resulting in an abundance of new amenities including shops, bars, restaurants, leisure facilities and entertainment options," said Ms Almond.

NEW HOMES FUEL HOUSE PRICE RISES

A boost in supply of new homes in the area and a growing jobs market have also combined to attract a new wave of affluent Hackney residents working in finance or in tech at the borough’s "Silicon Roundabout" at Old Street.

“Hackney is hugely popular with younger buyers and renters, and its appeal reaches out to everyone, from those within the creative industry, through to City workers who wish to live within easy reach of work,” says Mr Layton.

“The unprecedented growth in tech and media jobs in the previous five years has resulted in residential areas popular with this genre of worker far outperforming other markets.”

The report says that although prices for new homes in comparable London markets were experiencing a slowdown, Hackney new homes prices were comparably stronger in the year to December 2017.

The cost of a new home in the borough rose by 3.5 per cent in the year, compared with 2 per cent in neighbouring Islington, 2.3 per cent in Waltham Forest and a drop of 3.1 per cent in Tower Hamlets, also in east London.