Wednesday 21 March 2007

HACKNEY FEARS YUPPIE INVASION

ESTATE agents have exposed the scale of skyrocketing house prices ahead of the East London Line extension, writes Tom Calverley

Property experts told the Post they expect at least a 10 to 15 per cent rise by this time next year across the borough as thousands of City workers flock to Hackney.
Mayor Ken Livingstone has billed the extension, which will include the construction of new stations in Dalston, Hoxton and Shoreditch High Street, as a way to diminish social exclusion.

But experts confirmed that high earners are already snapping up Hackney property in their droves because of the forthcoming direct link with Canary Wharf and the City.
Daren Haysom, manager at Foxtons Shoreditch, said: “Hackney is already well connected to the city by buses, bike and on foot, so the East London Line will be more a link to Canary Wharf. It’s really attractive for couples when one works in the city, the other works in Docklands.

“People are realising it’s a very exciting place to be. I’m seeing people coming from central and West London, pushing prices up. We’ve seen growth in houses prices of up to 50 per cent in some areas.”

The average house price in Hackney is currently £242,806 but experts believe it will soon near the London average of £325,000.
Alan Dantes, Branch Manager of Felicity J. Lord, said that local residents are being “outpriced”.

He said: “Of our buyers currently completing, one in three are from outside the borough.

“People are moving in from Highbury, Islington, even Clerkenwell. More investors are looking at Hackney. I think that Buy to Let will increase next year as you get a 7 per cent yield on the property in a year.

“You could take something overpriced and within six weeks the market would catch up.”
Rents also look set to rise dramatically. Ismet Komuralp, Sales Consultant at Hamilton Fox, said: “The Tube puts the price up anywhere within the immediate 100 metres of a station by 50 to 75 per cent, and anywhere within 10 minutes walk of the new stops will go up in value, maybe by £30 to £40 a week. But you can only charge people so much rent.”

The expected rise drew the wrath last night of residents who complain locals will be forced out.

Meanwhile, campaigners claim the council is not providing enough affordable homes from the sale of its property. Only 12.5 per cent of the flats created as part of the Dalston Junction regeneration will be used for social housing.
Louise Brewood, head of the Broadway Market Traders and Residents Association said: “I have lived in Hackney all my life. I wanted a tube, more access, more accessibility. The problem is the way it’s being done and what’s being built around it.

“Hackney council has given accommodation over to private development. It’s very scary. My kids will never be able to afford to stay here.”
Kathryn Moore, committee member of the De Beauvoir Association, said: “Many of the new flats are so small. I’m sure this will have a long-term negative social impact. I’m not really sure who will benefit from the regeneration that’s visible to date, except the builders.”

A spokesman for housing charity Shelter said: “Anything that pushes up prices is of concern to us. London in particular is unaffordable already. That it is why we are saying it is important that social homes are maintained in these areas.”
A spokesman for Hackney Council said: “We are the only borough in London without a Tube line and the new line opens up access. The key thing about the Tube is it gives access to the rest of London.

“The benefits to the area far outweigh the concerns, such as links to jobs and improved links for small businesses.”

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