What are the Latest Property Trends in Shoreditch?
Naysayers have been prophesying the end of the Shoreditch property boom since 2016. They frequently point to Mayfair as an example of where Shoreditch is headed, with its stagnant property prices and exorbitant prices appealing to only the ultra-rich.
However, Shoreditch appears determined to prove them wrong. The boom is far from over as the rental market goes from strength to strength. The prophets of doom overlooked the impact a constant stream of young workers would have on the Shoreditch property market.
The Shoreditch Market Today
Shoreditch remains one of the most popular boroughs in East London for residential property. The average property price is now slightly above the average sold price across London, thanks largely to growth over the last two years. Shoreditch’s popularity makes it more expensive than nearby Hoxton and Haggerston.
The Shoreditch rental market is also doing better than the London average. The average weekly rent sits above the London average and are some of the highest in the region currently, with the borough commanding a higher average rental price than Spitalfields, Barbican, Whitechapel, Bethnal Green and Islington.
Rental Yields Look Set to Further Increase
In the past, Shoreditch property was snapped up by buy-to-let investors keen to generate long-term yields. However, the influx of affluent young workers to the region is changing the demographic of those buying Shoreditch property. The new developments, including Principal Tower, One Crown Place and Long & Waterson, will likely go to professionals moving to the area.
The Market Will Prove Resilient to Brexit
The Brexit vote has brought a cloud of uncertainty to London’s property market. The market has slowed as many buyers and sellers from abroad await the final Brexit package. The good news is that after this slow period, Shoreditch’s property market has remained largely unaffected. There may be two main reasons for this.
Firstly, the tech industry, which has brought providers Shoreditch with a steady stream of young and affluent buyers and renters, depends significantly less on the politics of Brexit than other sectors. The nature of the work means employees are flexible to work from anywhere.
Secondly, the arrival of Crossrail to East London will have a profound effect on its property market. Liverpool Street Crossrail Station will be within easy reach of Shoreditch. Once the line is completed, the stronger transport links will drive up Shoreditch property values (and rental values) ensuring market growth into 2019 and beyond.
A Rebalancing of London
It’s estimated that East London will be one of the largest growth drivers in the UK by 2030, with claims that it will contribute more than £5 billion to public coffers annually, more than the whole East of England.
As the whole city recalibrates to this new tech hub, Shoreditch, Hackney, and Stratford could find themselves at the new epicentre of the city, catapulting property prices and driving rental yields through the stratosphere.
The golden years of Shoreditch property are far from over. In fact, it could just be the beginning of a bright future for the Shoreditch property market.