Hackney sees highest house price rise in capital

Hackney sees highest house price rise in capital

The North East London borough of Hackney has seen the steepest growth in house prices in the capital over the past 20 years, according to Lloyds Bank.

The average house price in Hackney has increased £530,700 (702 per cent) from £75,569 in 1996 to £606,269 in 2016. 

This compares to the average increase of almost 450 per cent for London and 290 per cent in England and Wales over the same period.

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The sharp increase in Hackney has seen it shoot 16 places up the list of house price increases for London boroughs, from 28th in 1996 to 12th in 2016.

Homes in Westminster have seen the next largest increase in average prices over the past 20 years, from £190,438 (1996) to £1,424,388 (2016) – an increase of 648 per cent - followed by Southwark (626 per cent).

Waltham Forest (617 per cent) and Newham (612 per cent) were among the six least expensive boroughs in 1996 but have now moved to one of the top five performing areas.  

House prices in these areas were boosted by the Olympic regeneration programme and improved travel links via the Dockland Light Railway (1987) and the Jubilee Line extension (1999).

Andrew Mason, Lloyds Bank mortgage director, said: “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.

“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.”