Residents who hope to up-size their pad are in for a shock, according to a report released by the Greater London Authority.
House prices in Hackney grew at almost twice the rate of most other London boroughs last year. Prices rose by 11.6 per cent in 2012, second only to upmarket Kensington and Chelsea.
Lawrence Hall, of property website Zoopla, credited the rising prices to Hackney’s attractive environment. He said: “Shoreditch and Hoxton are now among the most fashionable places to live in London, particularly for wealthy young professionals.”
According to the Land Registry’s house price index, the average price of a Hackney home is now £436,376 – the fifth most expensive of all London boroughs.
The average London house price is currently £373,207, compared to £172,441 across the rest of the country.
According to the Office for National Statistics, house prices in England and Wales, excluding London and the South East, rose by just 1.9 per cent in the year to December 2012.
Daren Hayson, sales manager of Foxtons estate agents, said that Hackney’s comparatively large property price rise can be attributed to the area’s recent transformation.
He said: “The historical preconception of the borough as a dirty, frightening place has been abolished by the Olympics and yet it remains a cheap alternative to its more expensive neighbours.”
The average house price in neighbouring Islington is £510,671.
Mr Hayson added: “It’s not just the rich city bankers benefitting from the rise but people who already own property in the area. I’ve lived in Hackney all my life – I wouldn’t want to live anywhere else.”
The Royal Institute of Chartered Surveyors has predicted that London house prices will continue to rise over the next 12 months.
