The financial slump of 2008 hit many places in the UK hard – and many of London’s most popular postcodes such as Islington were no exception. According to Nationwide’s House Price Index calculator, the average property in N1 fell by nearly £70k between Q4 2007 and Q4 2008 – a decrease of 15.07%.
If anything, the price falls in Islington were more exaggerated than in other locations as the market corrected itself in an extreme way from some of the shady financial tactics that created the UK’s housing bubble.
House prices rise again in Islington
However, the likes of Islington and other desirable parts of London have differed from other parts of the UK in in the way that they’ve recovered after the crash. While many locations across England and Wales remained stagnant at best, house prices in Islington – thanks chiefly to its proximity to the City of London and excellent transport links – have risen exponentially.
Any investors that put their money into Islington property after the low of 2008 will have seen significant gains from their investment. Although Nationwide shows that prices took until early 2012 to correct themselves to pre-crash levels, they still rose markedly quicker than the rest of the country – and they’ve risen exponentially since.
In the nearly two years between Q1 in 2012 and Q4 of 2013, the average house price in Islington has grown by 17.66%. That means that if you’d bought a property in January 2012 for £500,000, a little under the average house price at the time, it would now be worth £658,898.
Why have house prices risen in Islington so quickly?
The initial recovery in Islington owed much to the general popularity of London and Islington’s great location and transport links. It still represented a good value, easily accessible investment in Central London for city workers and foreign investors, while its excellent proximity to many popular Universities and colleges meant that it was very popular with well-off international students.
However, the second ‘phase’ of price rises in Islington has come as growing numbers of ‘normal’ people are able to buy property again. The increased availability of lending thanks to the government’s controversial Help to Buy scheme, as well as growing economic confidence, means that demand for property in Islington remains high – keeping prices on the rise.
Alongside this high demand comes a shortage of new housing being built in Central London, which also helps to boost prices. Thanks to its ideal location, just a short journey from the tube, Islington is a perfect option for city workers and London’s high earners who want a convenient, attractive place to call home.
How are house prices predicted to fare in Islington in the next few years?
Because of growing economic confidence, overwhelming demand and George Osborne’s promise to extend the Help to Buy scheme until 2020 in England, means that no-one anticipates prices to do anything but grow in desirable parts of London like Islington over the next few years. In the last quarter alone, property prices in Islington grew by 5.7%.
Some people have criticised Islington’s extreme price rises, saying that it has priced a number of people out of the market, but there’s no doubt that investing in this pretty, leafy part of North London is a dependable place to put your money.
Author – Huge Grover Associates is one of London’s most respected estate agencies and has been helping people buy and sell homes in and around Islington for over 20 years. For more information about homes in Islington, visit Hugh Grover online today.