12 July 2019/ Guides

Market overview including rent guide – For East London

For many years, East London has been the younger, cooler and shabbier side of London. The last three decades have seen creative people pouring into areas like Shoreditch, Bethnal Green, Hackney and Stratford. The area is known for having some of the longest running and most well-established markets in the capital, as well as great bars, world-famous street food and restaurants. Add East London’s rich history to the mix, and you have an exciting and vibrant business location.


While the East End forms the core of what most people think of when they think of East London, the area is much larger. Most definitions agree that East London is the area that lies north of the Thames which stretches from the City of London to the Metropolitan Green Belt in Essex and Middlesex. This means the boroughs of Tower Hamlets, Newham, Waltham Forest, Barking and Dagenham, Redbridge, Havering and most of Hackney are all part of East London.

The area includes the following major landmarks:

  • Tower of London
  • Canary Wharf
  • Olympic Park
  • Brick Lane
  • Barbican Art Gallery
  • Victoria Park
  • Broadway Market

History

 

The area that would go on to be known as the East End of London first began to formalise in the Middle Ages, but building and development really began to pick up in the 16th century. For most of its lifespan, the East End was separated from the west of the city by an open space known as Moorfields. This open space began to be developed in the late 1770s and is fully urbanised today.

The East End has always been home to the capital’s poorest residents and areas. This began with the medieval period, but continued as industrialisation saw the area become popular for industries such as tanning and fulling (woollen clothmaking). The docks and their related industries were also a source of bountiful, yet low-paid employment.

The East End was heavily bombed during WWII, with 80 tonnes estimated to have fallen on the Bethnal Green are alone. The end of the war saw large parts of the east side of London uninhabited and derelict. The rest of the twentieth century has seen the East of London go through some major changes. The 1980s saw projects like Canary Wharf and the redevelopment of the Isle of Dogs, while the high profile Olympic Park was built on former industrial land around the River Lea.

Who lives in East London?

 

In 2017, over 2 million people were living in East London. The average age of these residents was 33 and the average number of residents per household was 2.67. The redevelopment of the area has seen a large rise in the population since 2002, when the number of residents numbered just over 800,000.

70% of the East London population are aged 16-64, while 21% were aged 15 and under in 2017.

What is the local economy of East London like?

 

East London has experienced significant growth in the second decade of the millennium. 110,000 jobs have been created since 2012, and a further 125,000 are forecast by 2030. In 2014, there were 1.2 employee jobs across the region. The industries with the highest amount of employees in 2014 were the professional, scientific and technical services, administrative and support services, health care and social work and information and communication.

In 2018, the average annual salary in Newham and Hackney were £38,000 and £40,000 respectively. Tower Hamlets is the highest earning part of East London with an average annual salary of £69,000.

Between June 2018 and May 2019, the average property price in East London was £494,000. For detached houses the average cost was £974,000, while for flats it was £455,000.

Transport

 

The East of London has its own part-segregated, bus system call East London Transit that is part of the London Buses network. It connects National Rail, London Underground, Tfl Rail and London Overground to parts of East London that are currently only served by bus routes, such as parts of Havering, Redbridge and Barking and Dagenham.

Most parts of the East End are connected to the London Underground, making travel to the rest of the city quick and relatively straightforward. National rail services can be accessed from Waterloo, Charing Cross, Kings Cross and Euston are all easy to get to from the East End.

The nearest airport is London City Airport which can be used to get to a wide variety of European destinations. Those looking to travel further afield can access Heathrow from Paddington station and Gatwick from London Victoria.

Rent guide to East London  

 

There has been a growth in businesses setting up offices in East London, and with good reason. The area surrounding the Olympic Park has had around a £1 billion worth of investment committed to it, and has seen new offices from heavy hitters including BT Sport and Infinity LDC. The area became fully operational in 2018. Between 2009 and 2014, East London saw thousands of start-ups open their doors. For businesses looking to set up a London office, East London offers easy accessibility, interesting surroundings and an exciting range of bars, restaurants and sources of entertainment.

Here is a breakdown of what to expect in the most prominent parts of East London:

Tower Hamlets

 

Tower Hamlets is one of the capital’s most prestigious business destinations, with Canary Wharf in particular being one of the London’s most recognisable buildings. Among the world-famous companies that are headquartered in this part of London are Barclays, Citigroup, J.P Morgan and Thomson Reuters.

On Realla, we currently have a total of 5,773 commercial properties from 93 agents for the Tower Hamlets area. 331 of these are offices and 62 are serviced offices, with an average renting price of £34 PSF. The median asking price for purchasing a commercial property in Tower Hamlets is £702,500, although prices can go into the tens of millions.

Shoreditch

 

Nestled in the middle of Hackney and Tower Hamlets, Shoreditch has developed a unique identity over the last few decades. The history of the area is as one of London’s entertainment hubs, and today the area is full of great places to blow off steam or entertain clients.

Realla currently has 2,743 commercial buildings listed, 425 of which are offices and 101 are serviced offices. The average rental price is £51 PSF.

If you are looking to buy an office in the Shoreditch area, you are looking at median asking prices of around £1 million. The highest price we currently have listed is £25 million.

Hackney

 

Hackney is a hugely desirable location for start-ups and entrepreneurs. The area is known as having an exciting and innovative culture, and this makes it a great place to set up a new business. This entrepreneurial spirit is reflected in the areas diverse range of bars and restaurants.  

We have 2,199 commercial properties from 31 agents listed for Hackney. 46 of these are offices and 7 are serviced offices, with the average asking price being £29 PSF. Buying an office in Hackney could cost you anywhere between £500,000 and £2.4 million.

Sources:

https://www.plumplot.co.uk/East-London-population.html

https://www.london.gov.uk/sites/default/files/description-londons-economy-working-paper-85.pdf

https://www.london.gov.uk/press-releases/mayoral/mayor-reveals-east-london-is-fastest-growing-area

https://www.plumplot.co.uk/East-London-salary-and-unemployment.html

https://www.plumplot.co.uk/East-London-house-prices.html

https://startups.co.uk/starting-a-business-in-east-london/