Mapped: Hackney Top of the League for House Price Growth in London
House prices in Hackney have risen by 9.5% in just 365 days. According to Rightmove’s most recent House Price Index, published in September 2017, Hackney, has seen the highest levels of house price growth in the capital.
The majority of London, however, has experienced a market slowdown. While some have felt marginal dips, others have seen dramatic falls. House prices in Kensington and Chelsea, for example, have dropped by 10.2% in the past year alone.
In the report, Rightmove director Miles Shipside noted, “Hackney and Southwark are among the cheapest Central London boroughs, and these two have seen year-on-year increases of 7.2% and 9.5% respectively.”
Earlier this year, the Evening Standard listed Hackney as London’s newest £1-million flat hotspot. On a ten year timeline, the borough maintained its winning status. House prices in Hackney rose by 124%, beating the City of London (115%), Westminster (106%) and Kensington and Chelsea (102%).
In an attempt to combat affordability stretches, Londoners may find themselves seeking out cheaper pockets of the capital. Though by no means affordable by national standards, Shipside notes, “Hackney and Southwark are among the cheapest Central London boroughs.” It’s likely that a surge in demand has accelerated house price growth.
Amongst London’s worst performing boroughs were Kensington and Chelsea. Simon Rubinsohn, RICS chief economist, noted in March 2017 that tax changes have “had a significant impact” on high-end homes. The changes, which called for an additional 12% to properties over £1.5m seem to have deterred buyers who do not wish to “fork out thousands of pounds in transaction taxes.”
Between April 2015 and March 2016, property transactions in Kensington and Chelsea contributed 7% of all stamp duty paid in England and Wales. London as a whole contributed 46% to the £7.3bn total.
Past performance is not a reliable indicator of future results.
Capital at risk