RISE IN PRICES SPARKS HOUSING SHORTAGE

A FURTHER rise in Hackney’s house prices has led to a drastic shortage of homes up for sale in the borough this spring, write Ravender Sembhy and Ronan Murphy.

Despite being dubbed the worst place to live in Britain by a Channel 4 property programme last year, Hackney homeowners are holding on to their property as demand reaches fever pitch.
As a result just 665 houses were sold in Hackney in the last quarter of 2006, the lowest of all London boroughs apart from the City.

Nevertheless, property prices in Hackney have risen 14 per cent in the last year alone, a rate four per cent above the national average. This comes on top of an astonishing increase of 320 per cent in the last 10 years, making Hackney’s house prices the fastest rising in London.

In the past 11 years Hackney has moved from being the 25th most expensive borough to live in London to the10th. According to Land Registry figures, the average price for a house in Hackney - £291, 626 - is now close behind the capital’s overall average of £322,000.

This boom is partly due to the successful Olympic bid, which put Hackney firmly on the property map. There was an attempt by some homeowners to cash in early following announcement of London’s success, but, as prices continue to rise, those who waited are now unwilling to sell.

Jay Wilson, of Victoria Park based Bentley and Bond Estate Agents, said: “Weeks after the bid some people were putting their houses up for double their actual market value. “The Olympics was, and definitely still is, a factor.”

However, two years on from the Olympic bid and there are barely any sellers in the market.
Although estate agents anticipate a rise in homes being sold and bought during the spring, agencies all over Hackney are reporting a distinct lack of activity. Potential buyers are far outnumbering vendors.

Amrit Arri, of Bunch and Duke Property in Mare Street, said that while the Olympics were a catalyst for the rise in prices the market was now being driven more by circular economics.

“People see the prices going up and they’re less inclined to sell,” he said.

“This creates scarcity in the market, which drives the prices even further up. Our prices have been going up at about two per cent a month. They say Hackney is the next Islington.”

Joe Wood of Bentley and Bond said that he had seen three bedroom maisonettes priced at over £400,000.

He said: “In five years the prices are going to be God knows what. Put it this way: I’d like to own property in Hackney right now.”

He urged homeowners to exercise an element of caution and not delay selling until the last minute.

“They should be very wary, as it could all quickly go against them,” he said.

“Both Barcelona and Athens went into recession after staging the Olympics. There could be an overspill of property going onto the market in 2012, and prices could plummet.”