Is buying a property in Hackney a good investment?

Last updated on December 29, 2023

Yes, the analysis of London's property market is included in our pack

If you've admired the artistic vibe and eclectic culture of Hackney, you might consider owning property in this London borough.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for the UK, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Hackney?

Hackney in London has emerged as a highly sought-after location for property buyers, thanks to a unique blend of attributes that set it apart from other real estate markets, especially within London

What's intriguing about Hackney is how it combines urban vitality with a sense of community, something that's not always easy to find in a bustling metropolis like London.

Firstly, let's talk about what makes Hackney stand out. This area has undergone significant regeneration over the past couple of decades, transforming it from a relatively overlooked part of London to a trendy and vibrant borough.

The change really started to gain momentum in the early 2000s, and by the time the 2012 Olympics spotlight hit East London, Hackney was already on its way up.

This kind of transformation has brought with it new businesses, improved infrastructure, and a flourishing arts and cultural scene. These factors have continuously fueled its popularity among property buyers.

Now, compared to other areas in London, Hackney offers a unique blend of modern living and historical charm. The borough is dotted with beautiful Victorian and Georgian properties, providing a stark yet harmonious contrast to the contemporary apartments and new developments.

This architectural diversity appeals to a wide range of tastes, something not every London borough can boast about.

Well, considering the ongoing developments and the borough's increasing popularity among young professionals and creatives, it seems like Hackney's appeal isn't just a passing trend.

The area has a growing reputation as a hub for creativity and innovation, drawing in people who want to be part of a dynamic and evolving community. This kind of environment tends to create a self-sustaining cycle of demand and development.

Speaking of the people it attracts, Hackney has become a magnet for a diverse mix of residents. From young professionals and artists to families looking for a community-oriented lifestyle, the borough caters to a variety of lifestyles and preferences.

The presence of good schools, parks, and family-friendly amenities makes it appealing to families, while the vibrant nightlife and cultural scene attract younger individuals and couples.

However, it's important to acknowledge some potential weaknesses of Hackney. Like many rapidly developing areas, the borough faces challenges like rising property prices, which could put it out of reach for some buyers.

Additionally, while the area has become safer and more attractive over the years, it still grapples with some urban challenges like congestion and the fast pace of change, which might not appeal to everyone.

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Why is Hackney a nice place to live?

Hackney offers a unique living experience that blends a rich cultural tapestry with the convenience of city life.

This borough has evolved significantly over the years, making it an increasingly attractive place for various people, including expats.

When you think about the lifestyle and culture in Hackney, it's a vibrant and eclectic mix. The area is known for its artistic and creative flair, reflected in the numerous art galleries, live music venues, and independent shops that dot the streets.

Areas like Shoreditch and Dalston, part of the wider Hackney borough, are famous for their trendy bars and cafes, appealing to a younger and more bohemian crowd.

The expat community in Hackney is quite diverse and thriving. Thanks to its welcoming atmosphere and cultural diversity, people from all over the world find a sense of belonging here.

This multicultural environment not only enriches the social fabric of the area but also brings in a variety of international cuisines, festivals, and events.

Living in Hackney does come with a cost, as it's part of London, one of the world's most expensive cities. The cost of living varies within the borough.

Some areas are more upscale, while others are more affordable, catering to a range of budgets. Rent and property prices have been on the rise, reflecting the area's increasing popularity.

Safety in Hackney, like many urban areas, has its ups and downs. Over the years, the borough has seen improvements in safety, but it's always wise to be aware of your surroundings, especially at night. The local police and community initiatives have been working together to enhance the safety and well-being of residents.

Regarding amenities and facilities, Hackney boasts a wealth of options. Schools like Mossbourne Community Academy and The City Academy Hackney are known for their quality education.

For healthcare, Homerton University Hospital provides comprehensive medical services. Shopping enthusiasts can explore Broadway Market and Hackney Walk for a mix of high-street and boutique shopping experiences.

The quality of infrastructure in Hackney is quite good, with ongoing investments in road, utilities, and public services. Internet connectivity is generally reliable and fast, catering to the needs of its tech-savvy residents and the numerous startups based in the area.

Accessibility is one of Hackney's strong suits. The borough is well-connected to the rest of London through various transport links. The London Overground services, like the ones at Hackney Central and Hackney Downs, provide easy access to other parts of the city.

Additionally, the extensive bus network makes commuting convenient and efficient. For international travel, London's major airports are accessible via public transport or a relatively short car journey.

In terms of public transportation, residents have multiple options. Besides the Overground and bus services, there are also several bike-sharing schemes and ample cycle lanes for those who prefer cycling.

This mix of transportation options makes Hackney not just a culturally rich and vibrant place to live, but also a practical choice for those looking for easy access to the wider city.

How much does it cost to buy real estate in Hackney?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in the UK.

Buying a property in Hackney can be an exciting prospect, but it's important to understand the landscape of the real estate market there.

In Hackney, you'll find a diverse range of residential properties. This includes everything from modern apartments and traditional Victorian houses to more exclusive properties like luxury villas.

The type of property that's in high demand tends to vary, but there's a particular leaning towards apartments and Victorian houses. The apartments, especially new developments, attract young professionals and investors due to their modern amenities and convenient locations.

Victorian houses, on the other hand, appeal to families and those looking for more space and historical character.

Regarding the types of properties available, Hackney has a mix of both new developments and resale properties. The new developments are often part of the borough's regeneration projects, featuring contemporary apartments with various amenities.

Resale properties, including the Victorian and Georgian houses, offer a more traditional London living experience, with their unique architectural styles and historical charm.

The price range for properties in Hackney can vary significantly based on the type and location of the property. Prices per square meter can range broadly.

Typically, new development apartments might be priced higher per square meter due to their modern facilities and new build status. It's important to note that property values in Hackney have seen a noticeable change over recent years. The area's ongoing development and increasing popularity have led to a general upward trend in property prices.

Looking ahead, there are several factors that might influence the real estate market in Hackney. Upcoming developments and city planning changes can play a significant role.

For instance, any new public transport links or infrastructure improvements can increase the appeal of the area, potentially driving up property values.

Also, as more businesses and cultural venues establish themselves in Hackney, the demand for properties in the area is likely to continue growing.

Predicting the real estate market in the coming years is always a bit of a guessing game, but given Hackney's current trajectory, it's plausible to expect continued interest and potentially rising property values.

Factors that indicate a potential increase in value include the ongoing development projects, improvements in transportation and infrastructure, and the growing appeal of Hackney as a culturally vibrant and diverse area.

Where is the best area to buy a property in Hackney?

When considering the best area to buy a property in Hackney, it's important to recognize that the borough is diverse, with each part offering its unique atmosphere, property types, and price ranges.

Firstly, let’s explore the different atmospheres across Hackney. Areas like Shoreditch and Dalston are known for their vibrant, youthful energy, filled with bars, restaurants, and a bustling nightlife.

These areas tend to attract a younger crowd, including professionals and artists. The property types here are a mix of modern apartments and converted industrial spaces, offering a more urban living experience.

In contrast, areas like Stoke Newington and Victoria Park are more family-oriented. They offer a calmer, more residential atmosphere with a sense of community.

These areas are characterized by Victorian and Edwardian terraced houses, providing more space and often with gardens - ideal for families or those seeking a quieter lifestyle.

Prices across Hackney vary considerably. Trendier areas like Shoreditch and Dalston may command higher prices, especially for modern apartments. In more residential areas like Stoke Newington, the prices can also be high, reflective of the spacious housing and community feel.

As for up-and-coming areas within Hackney, places like Clapton and Homerton are gaining attention. These neighborhoods have been undergoing gradual regeneration, attracting new cafes, shops, and community projects.

Properties here can be more affordable compared to the more established areas, offering potential for growth in value.

In terms of where it's a good idea to look for a property, it really depends on what you're looking for. For a vibrant, urban experience, Shoreditch and Dalston are great options.

For a more family-friendly environment, Stoke Newington or Victoria Park are worth considering. For those looking at investment opportunities or more affordable options, Clapton and Homerton could be smart choices.

On the contrary, there are areas that might be less advisable for certain buyers. For example, some parts of Hackney closer to major roads or industrial sites might not offer the same residential charm or quiet as other parts of the borough. These areas might also lack the same level of amenities or green spaces.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for the UK.

Area	Atmosphere	Property Types	Price Range
Shoreditch	Vibrant, Youthful	Modern Apartments, Converted Industrial Spaces	Higher
Dalston	Vibrant, Artistic	Modern Apartments, Urban Spaces	Higher
Stoke Newington	Family-Oriented, Residential	Victorian and Edwardian Terraced Houses	High
Victoria Park	Family-Friendly, Calm	Spacious Houses with Gardens	High
Clapton	Up-and-Coming, Diverse	Variety of Properties	Moderate, Potential for Growth
Homerton	Regenerating, Growing	Affordable Housing Options	Moderate, Potential for Growth

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Is there a strong rental demand in Hackney?

Hackney is indeed experiencing strong rental demand, with certain nuances in terms of duration, tenant profiles, property types, and areas within the borough.

In terms of rental duration, Hackney caters to both short-term and long-term rental markets, but there's a notable skew towards long-term rentals. This is largely due to the area's appeal to young professionals, creatives, and families who are looking for stability and community rather than transient living.

The growing job market in and around Hackney, combined with the lifestyle it offers, makes it a desirable place for people wanting to settle down for extended periods.

The target demographic for rentals in Hackney is quite diverse. Young professionals are a significant segment, attracted by the borough's vibrant nightlife, cultural scene, and proximity to central London. These individuals often look for modern apartments or converted spaces that offer convenience and style.

Another key demographic includes families, drawn by Hackney's community feel, parks, and schools. They tend to seek larger properties, like Victorian terraced houses, that provide more living space and often a garden.

Specific areas within Hackney have distinct rental demands. Shoreditch and Dalston are popular among young professionals and creatives, who are typically drawn to modern apartments with amenities like high-speed internet and proximity to public transport.

Stoke Newington and Victoria Park, known for their more family-oriented vibe, attract tenants looking for spacious houses with gardens, good schools, and local parks.

Amenities play a crucial role in reducing vacancy rates. Properties that offer added conveniences such as in-built appliances, modern renovations, secure parking, and proximity to transport links are more likely to attract and retain tenants.

Additionally, being near local amenities like shops, restaurants, and green spaces adds to the property's appeal.

When it comes to potential returns on investment, properties in Hackney can be quite lucrative, although the exact figures vary depending on the property type and location.

Generally, modern apartments in trendy areas like Shoreditch might offer higher rental yields due to their popularity with young professionals.

However, larger family homes in areas like Stoke Newington could also present strong rental returns, especially as the demand for family-sized homes in London continues to grow.

Looking at the types of properties gaining more demand, there's a growing trend towards properties that offer flexible living spaces. This could be apartments with extra rooms for home offices or properties with adaptable layouts.

Such properties are likely to give better yields as they appeal to the evolving needs of tenants in a post-pandemic world where remote working has become more common.

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Is it easy to buy a property as foreigner in Hackney?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in the UK.

Buying a property in Hackney, London as a foreigner is generally straightforward, but there are certain aspects you should be aware of.

Firstly, the UK does not impose specific restrictions on foreign buyers purchasing property, which means as a foreigner, you have the same rights to buy property in Hackney as a UK resident.

However, there are some financial considerations, such as higher Stamp Duty Land Tax (SDLT) rates for buyers who already own property in another country.

The purchasing process in Hackney follows the standard UK property buying procedure. It involves several key steps; finding a property, making an offer, conducting surveys and searches, applying for a mortgage (if needed), exchanging contracts, and finally, completing the purchase.

One unique aspect of buying property in the UK is the concept of 'gazumping' – where a seller accepts a higher offer from another buyer after initially accepting yours. While not illegal, it's a risk to be aware of.

There are primary risks associated with property investment in Hackney, as with any real estate investment. These include market fluctuations affecting property values, potential for rental void periods, and unexpected maintenance costs.

Additionally, as Hackney is a rapidly evolving area, there's the risk that certain parts may not develop as anticipated, affecting the expected growth in property value.

Common pitfalls for foreign buyers often involve underestimating the total cost of purchase, which includes not just the property price but also stamp duty, legal fees, and potential refurbishment costs.

Another mistake is not thoroughly researching the area or the property, leading to investments in less desirable locations or in properties with hidden issues.

Working with a local real estate agent and a lawyer is highly recommended. A local agent can provide invaluable insights into the Hackney market, helping you find a property that meets your investment goals.

A lawyer, on the other hand, will ensure that all legal aspects of the purchase are handled correctly, which is crucial for a smooth transaction. This is particularly important in the UK, where the legal complexities of property buying can be daunting.

Common exit strategies for property investors in Hackney include selling the property for capital gain after a period of appreciation or renting out the property for ongoing income.

Some investors also opt for 'flipping' properties - buying, renovating, and selling them for a quick profit. The choice of exit strategy will depend on your investment goals, market conditions, and personal circumstances.