A brief history of house price growth in Shoreditch
You don’t have to look very far to find stories about house price growth in London. In fact, you don’t have to look very far to find information on house price growth in Hackney either. Both are favoured topics of conversation and debate in the mainstream media and at the dinner table. What about specific details for house price growth in Shoreditch, however.
In general, Shoreditch has experienced similar growth in house prices as other areas of Hackney. One of the main drivers of this is the transformation of the area in recent years into a tech cluster. Shoreditch is now home to thousands of tech start-ups looking to create the next big thing.
In fact, the area is one of the largest tech clusters in the world, making Shoreditch the UK equivalent of areas like San Francisco and New York in the US.
To get an idea of the scale of the tech industry, and entrepreneurship in general in Shoreditch, over 15,000 businesses were set up in the area over a two-year period between 2013 and 2014.
That obviously increases demand for office space, but it also has an impact on the residential property market. After all, all those companies need people to work for them and those people need somewhere to live. This presents fantastic opportunities for investors and landlords.
Let’s put some numbers on this now so you see how the Shoreditch property market has changed.
House Price Growth in Shoreditch
According to data from Land Registry, property prices in Shoreditch over the last 20 years have nearly tripled.
What about more recently? Land Registry figures shows property prices have nearly doubled over the last 10 years. One in 10 properties sold in Shoreditch now sells for more than £1m.
What about a breakdown of the types of property sold. Is there a difference in property price growth?
This data is from Land Registry figures over the last five years:
- Detached – increase of 52 percent
- Semi-detached – increase of 50 percent
- Terraced – increase of 43 percent
- Flats – increase of 47 percent
So, there isn't a significant difference in house price growth depending on the type of property sold.
Similar figures are reported elsewhere, supporting the analysis of Shoreditch being an area that is popular with young professionals who are often single and don’t yet have families.
What About the Future?
The technology industry in Shoreditch remains strong. In addition, house price growth has remained consistent over time. These are all strong indications that house prices in Shoreditch will continue on a steady growth pattern, making the area attractive for landlords and property investors.