Olympics boosts East End house prices
Monday, 23 July 2012 8:59 AM
Home owners living close to the main Olympics site have seen house prices rise by an average of almost £70,000 since London won the Games in 2005, according to research by Lloyds.
The bank looked at prices in the 14 postal districts closest to the Olympic stadium and found that prices rose by 33 per cent from £206,145 in July 2005 to £273,157 in March 2012.
This was greater than the average 24 per cent rise in England and Wales over the same period. That means the average house price near the Olympic Park (£273,157) is now 19 per cent higher than for England and Wales as a whole (£230,357).
Three of the 14 Olympic postal districts have recorded price rises of more than £100,000 since July 2005. The gold medal goes to Homerton in Hackney (59 per cent of £126,871), the silver to Dalston (53 per cent of £123,655) and the bronze to Shoreditch (52 per cent of £114,009).
However, prices in Plaistow rose just six per cent and Stratford, the home of the Olympic Park, saw an increase of 14 per cent.
Over the last 12 months prices have risen by 1.6 per cent across the 14 districts, outperforming the 2.2 per cent fall in England and Wales. Clapton took the gold (7.3 per cent), Bow the silver (6.3 per cent) and Shoreditch the bronze (5.2 per cent). In contrast, prices fell 4.4 per cent in Manor Park.
Suren Thiru, housing economist, Lloyds TSB, said: "In general, house prices in the East London postal districts closest to the main Olympic site have performed relatively well since London was awarded the 2012 Olympics in 2005.
"This partly reflects greater interest in these locations from both buyers and investors emanating from the award of the Games and the large scale regeneration taking place there, including improved transport links.
"However, the real Olympic legacy for the East London property market may well only be seen long after the closing ceremony as the dramatic transformation of this part of the capital is completed."
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