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Olympic effect sees property price increases in East London, study shows

Lloyds TSB research reveals a mixed picture for the East London housing market. Homeowners living close to the main site for the London 2012 Olympic and Paralympic Games have seen the value of their property rise by nearly £60,000 on average.

The average house price in the fourteen postal districts closest to the main site for the London 2012 Olympic and Paralympic Games rose by 28%, some £58,582, from £208,148 in July 2005 to £266,730 in May 2011, equivalent to a weekly increase of £192.

But house price performance among the 14 Olympic postal districts has been rather mixed. Since July 2005, three of the 14 postal districts, Homerton, Dalston and Bethnal Green, within the London 2012 boroughs recorded price rises of over £100,000. Those living in Homerton (56%) and Dalston (52%), both in the borough of Hackney, saw property prices rise by more than any of the other Olympic postal districts.

In contrast, East Ham and Plaistow recording the slowest growth in house prices since July 2005, both 8%. Stratford, the home of the Olympic Stadium, saw a 13% rise in house prices over the period, less than half the average increase across East London.
  
Also the house price increase of 28% in the fourteen postal districts closest to the London 2012 site since July 2005 was below the London average increase of 48%. The average house price rise across England and Wales was 28%.

House prices in the London 2012 boroughs have risen by 5% over the past year. Dalston recorded the largest price increase at 13%, while Shoreditch was the only London 2012 postal district to record a fall in house prices, down 4%.

The most expensive London 2012 postal district to live in is Dalston with an average house price of £349,004, followed by Homerton at £337,331. The least expensive postal district is Plaistow with an average house price of £196,426; 27% lower than the East London average.

The average house price among the London 2012 boroughs, at £266,730, is 36%, some £151,757 below the average for London of £418,487.

‘Interest in the East London housing market from both buyers and investors has increased markedly since London was awarded the 2012 Olympic and Paralympic Games, partly reflecting the substantial regeneration taking place there. However, despite this, house price performance in the postal districts closest to the main site of the Games has been rather mixed with some of these areas recording significantly larger house price increases compared to neighbouring districts,’ said Suren Thiru, housing economist, Lloyds TSB.

‘Looking ahead, the long term Olympic legacy for East London of improved infrastructure and transport links is likely to help underpin house prices in the area over the coming years,’ added Thiru.

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