East End of London house prices up over £800 a month since Olympic win
With only five months to go before the opening ceremony of the London 2012 Olympic Games, new research from Lloyds TSB reveals that the value of homes close to the main site have increased by over £60,000 on average since the winning bid was announced.
The average house price across the 14 postal districts closest to the main site for the London 2012 Olympic and Paralympic Games stood at £268,884 in November 2011, an increase of 30% or £62,739, from the average of £206,145 when London was awarded the Games in July 2005.
This is equivalent to a monthly rise of £815. House prices across England and Wales have risen by 25% over the same period which on average is a monthly increase of £611.
Since July 2005, house prices in eight of the 14 postal districts close to Olympic Park have risen by at least 20%. Dalston and Homerton, both in the borough of Hackney, have delivered the fastest growth in house prices, both recording increases of 55% between July 2005 and November 2011.
Shoreditch with a 47% or £102,934 increase has seen the next highest rise. Stratford, the focal point for Olympic construction activity, has experienced a 13% or £26,646 rise in its average price to £227,893.
House prices in the postal districts close to the Olympic Park have risen by an average of 0.5% over the past year, greater than the 0.3% fall across England and Wales.
However, just two out of the fourteen Olympic postal districts, that is Dalston which is up 10.3% and Clapton up 7.1%, have outperformed the average increase across London of 5.4% during the past 12 months. Bethnal Green recorded the biggest fall at 5.2%.
Despite these gains, the typical house price among the 14 postal districts close to the Olympic Park at £268,884 is 22% below the London average of £342,551, highlighting the area's still relatively affordable prices.
The most affordable postal district is Plaistow with an average house price of £188,760, which is 45% or £153,791 below the London average. In contrast, Dalston at £359,436 is the most expensive postal district.
‘Overall house price performance among the postal districts that are in close vicinity to the Olympic park has been generally positive since London's successful bid in 2005,’ said Suren Thiru, housing economist at Lloyds TSB.
‘Some areas close to the main site for the 2012 London Games have experienced a sharp rise in property prices, reflecting increased buyer interest as well as the regeneration taking place there. However, some areas have yet to see as marked an improvement,’ Thiru explained.
‘Over the long term, house prices in the East End of London are likely to be supported by the Olympic legacy of improved infrastructure and transport links,’ Thiru added.