Hackney has seen the highest rate of house price growth of all London boroughs in the last 20 years, according to research by ludlowthompson.
The average house price in the borough has increased by 489% in the last two decades, up from £91,000 in 1998 to £536,000 in 2018.
Data from the London estate agent found the overall London average house price has jumped 365% to £485,000, up from £104,000 in the past two decades.
It suggests that Hackney’s house price growth has been driven by the borough’s gentrification over the last 20 years, with a thriving nightlife and art scene in areas such as Dalston, Shoreditch and Stoke Newington.
With the Young British Artists movement and the influence of designers such as Alexander McQueen in the early 1990s, the area experienced a wave of cutting-edge bars, clubs and restaurants. This attracted young professionals to the area, who also found it a handy location for commuting to the City of London and the rapidly growing Silicon Roundabout.
Stephen Ludlow, chairman at ludlowthompson, commented: “Similar break outs of gentrification have happened all across London in the last 25 years in areas like The Oval and Brixton in addition to areas in Hackney such as Dalston and Stoke Newington.”
“25 years ago, only a few initial investors were buying in areas like Dalston. Now, the challenge is to find the next area of gentrification before young professionals start pushing prices up.”
Recent bar openings in the Hackney area include Ballie Ballerson, a bar featuring an adult ball pit which is popular among reality TV stars, Oslo, a live music bar and club built in a railway station and Blues Kitchen Shoreditch, an American Deep South themed bar and club.
The nightlife scene and fashionable restaurants in Hackney are popular among celebrities including Premier League footballer Dele Alli and comedian Russell Brand.
ludlowthompson adds that the growing development of transport links such as the Overground has made it increasingly convenient for professionals to commute to both the City and the Silicon Roundabout from Hackney.
What’s more, in December 2017, the London Overground Night Service was extended on weekends between New Cross Gate and Dalston Gate.