Urban villages: Islington, Hackney, and Victoria Park

London is peppered with what legendary civic theorist Jane Jacobs called ‘urban villages’, and, the leafy enclaves of Islington, Hackney and Victoria Park, in particular, continue to attract buyers, even in our present uncertain times. Over the course of this year, we have written much about the value on offer across prime central London’s (PCL) classically affluent districts. Dogged by ongoing volatility on the global stage, and uncertainty about the future of the property tax regime at home, activity has cooled, driving average prices in PCL down by -23.8% compared to their June 2014 peak. But, just outside of the north and eastern boundaries of the City of London, the impact has been felt less keenly, with average prices more or less stable over the same period, seeing a fall of just -0.8%.

Indeed, this ‘North and East’ region has proven the most robust of all the ‘outer prime’ districts of London over this time, where more domestic, mortgage-reliant buyers underpin demand. Specifically, Islington saw growth of 0.7%, and Hackney 3.9% over the year to September, while Victoria Park remained almost flat at -0.1%. This is in contrast to annual price falls of -4.7% across PCL over the same period.

Additionally, despite the continued softening of house prices in PCL, the average value for prime property in that region at the end of September sat at £4.4 million. This still dwarfs the same figure for North and East London’s most expensive district, Islington, at £1.7 million. Indeed, in terms of average pricing, the greatest value is to be found in the North and East compared with all the other outer prime London regions.

But, it is more than just a value proposition that draws people to these neighbourhoods; here, certain period homes that appear to quote the architecture of more central locations such as Belgravia, adjoin parkland of diverse scale, all within an easy travelling distance of the capital’s key employment hubs. They are also synonymous with a haven for intellectuals, writers, and artists, and more recently with a vibrant restaurant and fashion scene; venues like Bistrotheque in Hackney have established themselves as modern institutions, while Michelin-starred Da Terra near Victoria Park is currently regarded as one of the world’s finest eateries.

A younger crowd

As a result of all of the above, the buyer pool in these locations trends younger than the London average. According to Savills data, 76% of buyers in North and East London were under 40, compared with 63% across London as a whole over the twelve months to the end of August 2025. This dynamic is most marked in Victoria Park, where 88% fell into this age group, and to an even greater extent in Hackney, where this cohort accounted for 91%. The gradual correction towards pre-pandemic working patterns, heightened by more explicit return-to-office mandates from certain employers, makes locations with efficient transport links into the City of London and the West End all the more attractive. Younger people are also increasingly feeling the pull towards a more social work environment, and hence to areas with commuting potential. For example, a recent BUPA wellbeing survey indicated that 45% of Gen Z workers seek employment opportunities that prioritise interaction with others.

Some of this demographic can also be classified as upsizers – those who are seeking additional living space and are more likely to be starting or growing young families. Across London, they account for 71% of Savills buyers, and 77% in the North and East region. In this case, their prominence is more noticeable in Islington, where they account for 84% of buyers, and Hackney, where their representation is 81%. The availability of both private and shared outdoor space in the form of garden squares and larger parks enhances the appeal for those with small children. A strong range of local schools is also a key pull-factor. The parliamentary constituency of Hackney North and Stoke Newington is home to the fourth-highest number of independent schools in the country, while in the state sector, Hackney South and Shoreditch ranks 11th in the country for academic attainment at Key Stages 2 and 4, according to data from the Department for Education.

Robust demand is also reflected in a price premium for the region, with an average of £726,678 paid over the twelve months to the end of May 2025, according to Land Registry sales data – 6% higher than the £685,972 paid across the whole of London. Across the three urban villages of Islington, Hackney and Victoria Park, the average price paid represented a further premium at £787,033. As is typical in the capital, flat sales dominate in the North and East, accounting for 85% of property transactions over this period. However, the average price paid for a house at £1.37 million was more than double that of a flat at £611,188.

Of these districts, Islington has experienced the highest average sales price at £890,134. This is reflected by how established the district is as a prime location, a sometime home to political luminaries as diverse as Tony Blair, Boris Johnson, Jeremy Corbyn, and Dominic Cummings. Not that this is new – back in the Victorian age, the area was an enclave for the emergent middle class. N1 2 in Canonbury was the highest-value location at £1.06 million, including the local marquee address of Canonbury Square, while the average in N1 1, covering Highbury Barn and St Mary Magdalene Square, also exceeds £1 million. Both of these locations benefit from strong transport links, including proximity to Highbury and Islington tube station, which is serviced by the Victoria and several overground lines. They are also a short walk from the main Islington high street of Upper Street, which offers a wide array of high-end shops and restaurants.

Turning to Victoria Park, we see an overall average price paid of £629,748. It is perhaps no surprise to anyone knowing this part of town that postcode sector E9 7, around Wells Street and Victoria Park Road, is the most expensive. Boasting an attractive expanse of wide green space, it is an ideal location for outdoor activity, recreation, and a play space for children. With an average price of £777,508, this section of the borough represents some value at only 7% higher than the North and East average.

And in Hackney, where the overall average is £745,919, the most expensive postcode is N1 4 at £889,267, which covers not only De Beauvoir but also Mildmay Grove up to Newington Green. De Beauvoir Town, under the stewardship of the Benyon Estate, remains a distinctive, planned heritage development that continues to appeal to aspirational families, in accordance with its original design intention. The area sits adjacent to the buzzy nightlife hotspots of Dalston and Haggerston, while the daytime attractions of London Fields and Broadway Market across Kingsland Road are also easily accessible. It is not only serviced by Dalston Kingsland and Dalston Junction tube stations locally, but is also a short walk from Haggerston and Canonbury stations in opposite directions.

Exceptional rental growth in prime London

Investors have faced increasing challenges over the past year, due in part to the increased stamp duty surcharge for second homes and in light of upcoming regulatory challenges, predominantly in the form of the Renters’ Rights Bill, which at the time of writing is working its way through the final stages of parliamentary scrutiny (to learn more about this proposed legislation, please go to Savills dedicated information page on the Bill). It is therefore unsurprising to see that investors have only accounted for 7% of buyers across the capital over the latest twelve-month period, with North and East London sitting slightly below this at 5%. However, at 33.9%, the North and East have seen the strongest rental growth of any prime London region since June 2014; for comparison, outer prime London experienced 23.6% growth over the same period. And in terms of buyers whose primary motive is investment, Victoria Park bucks the trend, where they account for 13% of sales. This is informed by both the relative value in terms of average house prices, but also resilient rental growth within this particular submarket.

There is also a healthy supply of residential development occurring across the North and East region, with an estimated 61 schemes in the pipeline, each set to be delivered over the next five years with a minimum of 20 homes, based on data from construction analysts at Molior. Across Islington, Hackney and Victoria Park, there are thought to be 25 viable schemes, encompassing just over 2,000 homes for private sale, predominantly flats. Of these, 61% are thought to be already under construction or have reached practical completion and are still being marketed. In an environment where new builds are facing a constriction in future development, buyers and investors are set to benefit from a range of options in these upwardly mobile locations.

Uncertainty still pervades the top end of the London housing market. Over the summer, speculation in the press was rife on how the Treasury may address property taxation, and this has gone some way to subduing sentiment over the immediate term. Nevertheless, the north and east of London has proven itself to be a resilient marketplace, attracting aspirational families who need to base themselves in the capital, but are also drawn to the sophisticated and vibrant lifestyle on offer.

For more information, please contact your nearest London office or arrange a market appraisal with one of our local experts.