Tuesday, 27 July 2010

House prices: Homerton up 69%, Shoreditch up 53%, Clapton and Dalston up 39%

These figures from Lloyds TSB, which owns Halifax, show that since winning the Olympics bid house prices in Homerton are up by 69% and up by 53% in Shoreditch compared to the 36% London average.

While the research says that only four out of 14 "Olympic postal districts" (explained below) have beaten the London average of 36% increase over that period, all of these districts are in Hackney: Homerton 69%, Shoreditch 53%, Clapton and Dalston both 39%.

All the worst performers appear to be further east. The least impressive being Stratford, the one with greatest exposure to the Olympics. Up just 3%.

Comments at the end of this Telegraph piece discuss whether the rises have anything to do with the Olympics.

Last year Jules Pipe told Blood and Property that people moving to Hackney do not primarily see their homes as an investment:

Blood and Property: To what extent do you think that changes in the borough are related to property prices and new people moving here - how easily do you think that this process could be reversed (i.e. do you think that many hackney residents see their homes as investments or just as homes?)

Jules Pipe: "Hackney is a very popular borough for a variety of reasons, including its improving transport links, its vastly improved schools, popular leisure facilities such as London Fields Lido and its many parks, its status as a vibrant arts and cultural hub, amongst many other reasons.

"The Council’s research suggests that many of those moving into the borough since 2003 have been young, childless households on higher incomes than the current borough average, who rent privately. The impact of rising property prices in Hackney - as for London and the whole country - means that while owner-occupiers who bought during the past few decades will have benefited considerably from capital gains or opportunities to rent out their homes, the market has become very expensive for first-time buyers. This would suggest that the driving factor for today’s incomers is the desire to live in the borough, rather than seeking investment opportunities.

"The Council is committed to ensuring high quality, affordable housing for all Hackney residents. Right now across Hackney construction work is taking place to build hundreds of new social-rented and affordable homes, including council housing, after the Council lobbied the Government and received a total of over £43million in Homes and Communities Agency (HCA) funding since last September.

"For almost 30 years, affordable housing across the country often only got built as a spin-off of new private developments, and the downturn in the housing market threatened to bring even that to a halt. The commercial marketplace cannot be left as the only force to drive how housing is delivered. The Council has been working with the Government and its agencies and has successfully strengthened their confidence to give Hackney their social housing investment directly, so that we can deliver homes that are much needed by local residents."

'Postal districts' used to define the following fourteen postal districts that are located close to the site of the 2012 Olympic Park: Bethnal Green, Bow, Clapton, East Ham, Forest Gate, Dalston, Homerton, Leyton, Leytonstone, Manor Park, Plaistow, Shoreditch, Stratford and Walthamstow.

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