UK market focus: Hackney and Surrounds

Property prices in the London borough of Hackney have significantly outperformed since 2009, data from the Land Registry shows. During this time, only four London boroughs have recorded higher levels of growth.

Knight Frank’s Hackney and surrounds report also reveals that the borough has been one of the most active in London for residential development over this time. Over 6,000 new homes have started construction since the start of 2009.

The reasons behind this, which are discussed in more detail in the report, include Hackney’s status as London’s tech hub. Home to the East London Tech City Initiative, the area surrounding Old Street roundabout is now considered the world’s third largest tech cluster behind New York and San Francisco.

The borough ranked second in the UK for new business start-ups, and has received more funding from the Government-backed ‘Start Up Loans Company’ than any other London borough.

The growth in new businesses has attracted, and is expected to continue to attract, new residents to the area. Data from the Department for Communities and Local Government – based on 2014 estimates – predicts a further 11,500 new homes will be needed in the next five years in order to meet demand.

In the report we have focused on three locations within Hackney and the surrounding area where demand is likely to be particularly apparent: Shoreditch, Hackney Central and Hackney Wick.

Shoreditch

Now an established prime London address, house prices here have significantly outperformed the prime central London market. Such growth has been supported by an enhancement to the amenity offering in Shoreditch, now home to Versace and the world’s first pop-up mall.  

Hackney Central

The more frequent service provided by the London Overground in 2007 significantly reduced journey times into Liverpool Street, as well as the West End and Canary Wharf. A designated Area Action Plan is focused on developing the area’s retail amenity, formed around a new cultural quarter. Hackney Walk, a new luxury outlet, opened last year with Burberry, Aquascutum and Nike amongst the retailers on offer. Plans are in place to expand Hackney Walk to a similar size to Bicester Village in Oxfordshire. 

Hackney Wick

Located on the edge of the Queen Elizabeth Park, Hackney Wick is to undergo significant redevelopment. Like Hackney Central, the area also has an Area Action Plan that is expected to deliver a new town centre based around the Overground station, providing a key access point to the Queen Elizabeth Park. Within the Park a new cultural quarter is being built. Expected to open in 2021, the Victoria and Albert Museum and Sadler’s Wells Theatre are already confirmed tenants.

Read the Hackney and surrounds report in full.