Housing experts not worried about fall in Hackney’s house prices

The average price for a House in Hackney fell by its largest margin in a single month in two years, according to the first reports from the Land Registry. The figures for January of this year show a 1.5% decrease in the price of all homes in the borough, amounting to an average loss of just over £5,000.

This runs opposite to the whole of the country, which showed a very small 0.2% increase in house prices, and neighbouring boroughs such as Tower Hamlets, Newham and Waltham Forest which also showed increases of 0.2%, 0.6% and 0.5% respectively. However, Hackney still commands higher house prices than its neighbours with its average price of £366,698, still higher than its neighbours’ Tower Hamlets with £342,458, Waltham Forest with £242,114 and Newham with £228,552, despite their increases.

Property experts say this could be in part due to the unbalanced weighing of supply and demand in the country at the moment, with the property market having more houses then they can sell, due to the economic recession and the lower rate at which banks are lending mortgages.

However, Tim Gorgulu from Courtneys, an independent estate agent situated in Hackney commented that this is just a general figure and that Courtneys hadn’t seen any change in house prices. “With the different types of housing on the market in Hackney, the average figures aren’t indicative of every house, so home-owners shouldn’t be worried.”

With the Olympics set to start in less than a year and a half, local house prices don’t seem to be in danger of dropping exponentially anytime soon without serious economic trouble.

Case studies have shown that the “Olympic effect” in past cities that have had similar revitalisation projects to Hackney’s, such as the Olympics in Atlanta, Georgia have only added to the value of properties in the area as a result of efforts such as better public transport, newer homes and better facilities as a result of the games.

As a result, Hackney’s only real danger lies in outside sources of economic downfall such as the recent worldwide depression, which have signalled a definitive drop in house prices at Olympic sites in the past, even Hackney dropped lost a lot of its gained value from the Olympics at the height of the recession back in 2009 where houses lost more than 20% of their value in comparison to 2008.

Homeowners such as Leroy Mark, a pensioner who has owned his home in Dalston since 1985, hopes that the prices stay high so his children can benefit from his investment.

“When I bought this house back in the 80’s after I came to the country, it was a bargain and it was an investment to give to the rest of my family, The idea that it could lose its value in price soon would be the worst thing for me at my age,” says Mark.

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