Olympic effect sends East London prices soaring

Published 02nd Aug 2010

If you bought a pad in East London before London won its bid to host the 2012 Olympics, you will definitely be having the last laugh, as new figures reveal that property prices in the area have skyrocketed by 26 per cent since the triumph was announced...

With two years to go until London comes over all Lord of the (Olympic) Rings and hosts the 2012 Games, new research released by Lloyds TSB has revealed that property prices in the area are soaring.

The bank, which measured house price performance in the fourteen postal districts located close to the Olympic Park, found that a sharp rise in prices has been witnessed since July 2005, when London was named as the host city.

Homerton and Shoreditch, both in the borough of Hackney, have seen average property prices rise by 69 per cent and 53 per cent respectively, significantly above the Greater London average of 36 per cent.

East London will see a massive upgrade in facilities as a result of the hosting of the Olympic and Paralympic Games. The area will benefit from a 500 acre Olympic Park reaching from the Hackney Marshes to the Thames, which will include an Olympic stadium, aquatic centre, along with several other sporting complexes and a 17,800 person Olympic village.

Significant transport improvements are also taking place - investment is trebling the capacity of Stratford Regional Station, the main transport hub for London 2012 which is expected accommodate 120,000 passengers and enable 200 trains every hour during the Games. A range of other transport improvements serving the Park are already underway, including an extension to the Docklands Light Railway (DLR) and increasing capacity on the Jubilee Line.

However, things aren't so rosy over in Straford, the location of the Olympic stadium - which has been a whopping great building site for a few years now. Stratford saw a meagre three per cent rise in average prices, a far smaller increase than any of the other postal districts.

Perhaps this is indicative of people wanting to be close to the Olympic effect, but not right in the heart of it. After all, the stadium will remain after the Games have finished and this may put people off living close to a major sporting venue or tourist drawcard that will attract crowds and noise.

Suren Thiru, housing economist at Lloyds TSB said, "Some areas close to the Olympic Park have experienced a sharp rise in property prices since London's successful bid to host the 2012 Olympic and Paralympic Games. Part of this rise is likely to have been due to an increased interest in property in these locations from both buyers and investors as a result of the associated regeneration taking place."

"Looking forward, property prices across East London are likely to receive a boost from the legacy of improved infrastructure and transport links left by the London 2012 Olympics," added Thiru.

Four out of the 14 postal districts near Olympic Park saw house prices rise by more than the average for London and prices have bounced back strongly from the downturn in the housing market, rising by 13 per cent between April 2009 and April 2010. This was almost three times the average rise across England of five per cent, but slightly lower than the London average of 16 per cent.

The average house price among the postal districts near Olympic Park is £262,953.

Source: ' TMC '

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