Friday 17 February 2017 8:01 am

First time buyers, close your eyes - in 1996, you could buy a house in Hackney for £75,000

House prices in the London borough of Hackney have rocketed 700 per cent in the last 20 years.

It may seem hard to believe now, but in 1996 the average house price in Hackney was just £75,569.

Now, the average price is £606,269 – a jump of 702 per cent.

Read more: This tiny house in Chelsea has gone on sale at £600,000

Across London as a whole, house prices have jumped 450 per cent over the same period, according to data from Lloyds Bank.

In Westminster, the average house price has jumped 648 per cent, increasing by more than £1m, from £190,438 in 1996 to £1,424,388 last year. And in Southwark, the average price has sky-rocketed 626 per cent, from £87,559 to £636,040.

London property has been a solid investment for the past twenty years. The data shows that the average property in Kensington and Chelsea has increased by £6,498 per month.

But, for those who haven't made it onto the property ladder, the numbers are pretty depressing. The data underscores how unaffordable the capital has become; London house prices are now nearly 12 times average earnings.

Read more: This is how far house prices have plunged in Chelsea

Andrew Mason, Lloyds Bank mortgage director, said: "The last 20 years have seen substantial growth in house prices in London, especially in the most affluent areas of the city.

"The boom years between 1996 and 2008 saw the gap widening between house prices at the top end of the market and those in London's inner and outer boroughs, creating two distinct markets – 'prime' and 'mainstream'."

 

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