Tuesday, August 16News For London

Housing crisis: London hosts six out of ten UK areas with more property price increase

Are you a foreign young professional looking forward to settling in one of the trendiest areas in London? If so, you’d better rush before the prices hit new records, or just quit and pick another zone.

A new report by Zoopla property agency shows the impact of the housing crisis. Data reveal that over the last five years property prices in some areas of the capital have increased more than fifty per cent.

In East London hotspots Dalston and Shoreditch, for instance, property prices have risen by up to 59.89% and 58.06%, respectively.

© Marc Farràs from Zoopla data

As for the average growth of housing prices, Stoke Newington (North London) and Tooting (South East) head the list with £672 and £671, respectively.

© Marc Farràs from Zoopla data

Other conflict zones in the capital in terms of housing prices are Stratford (East) and Stockwell (South).

Regent’s Canal in Hackney close to Victoria Park is one of the capital’s areas most affected by housing crisis. © Marc Farràs

What all of them have in common is most newcomers are wealthy young people attracted by the vibes, the trends and the wide range of cultural gigs and venues. Brick Lane, Old Spitalfields Market, Kingsland Road and the Olympic Park are some of the areas where the rise of housing demand has dramatically increased the prices.

© Marc Farràs from Zoopla data

However, the problem is not limited to specific areas. As a result of gentrification, nearby areas are starting to suffer from the same consequences: increase of property prices, emigration of local families and the replacement of traditional shops and business by international brands and leisure facilities.

Fournier Street connects Brick Lane to Christ Church Spitalfields, at the very heart of Shoreditch. © Marc Farràs
Fournier Street connects Brick Lane to Christ Church Spitalfields, at the very heart of Shoreditch. © Marc Farràs

Apart from London, other British areas severally hit the housing crisis are Montpelier, St Pauls and Stokes Croft (all of them in Bristol) and Jewellery Quarter in Birmingham.

As property and rent prices continue to rise, social media users keep a parallel updated track of London’s housing crisis, showing that gentrification is spreading over the whole city including neighbourhoods that used to be far from the trendy hustle and bustle, like Ealing Broadway, Bow and Lewisham:

Recent data by Zoopla show house price growth has been slowing since December although it is expected to rise following increasing demand.