What's more, house prices in the area have outperformed the national market in the past year, new research from Lloyds TSB shows.
The average house price across the 14 postal districts closest to the main site for the London 2012 Olympic and Paralympic Games stood at £273,157 in March 2012, an increase of 33% or £67,012 from the average of £206,145 in July 2005 when London was awarded the Games. This is equivalent to a weekly increase of £207.
The 33% rise in house prices across the 14 postal districts nearest to the main site for the 2012 Games is greater than the 24% increase in house prices across England and Wales over the same period.
As a result, the average house price in the postal districts closest to the Olympic Park is now almost a fifth higher than the average England and Wales house price, compared with 11% higher in July 2005.
Clapton recorded the largest price rise at 7.3%, followed by Bow at 6.3% and Shoreditch at 5.2%. In contrast, Manor Park recorded the biggest fall at 4.4%. Of the 14 districts, 11 saw prices rise in the past year, in contrast to the national picture.
Three of the 14 postal districts closest to the Olympic Park, Homerton, Dalston and Shoreditch, have recorded price rises of over £100,000 since July 2005. Homerton in Hackney has recorded the biggest rise in house prices at 59% or £126,871, followed by Dalston at 53% or £123,655 and Shoreditch at 52% or £114,009. Plaistow with an increase of 6% or £10,162, has recorded the smallest increase while Stratford, home of the Olympic Park, has seen just a 14% or £28,537 rise.
Dalston is now the most expensive location among the 14 postal districts closest to the main site with an average house price of £355,963, which is 30% or £82,806 higher than the average price among the 14 East London postal districts of £273,157.
Homerton at £341,823 is the second most costly location. Plaistow is the most affordable postal district with an average house price of £189,167.
‘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,’ said Suren Thiru, housing economist, Lloyds TSB.
‘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,’ added Thiru.
