Research from Lloyds TSB, the banking & insurance partner of the London 2012 Olympic Games revealed many ‘Olympic’ house prices have increased by nearly £70,000 since 2005 when London won the games.
In March this year, the average house price across the 14 postal districts closest to the main Olympic site stood at £273,157. Of those 14 postal districts, 11 have seen prices rises in the past year.
Three of the districts, Homerton, Dalston and Shoreditch recorded price rises of over £100,000 in the past seven years. Dalston is home to the most expensive houses, at a £355,963 average.
Surprisingly, house prices in Stratford, where the Olympic Park is located; have seen just a 14% rise.
Suren Thiru, housing economist for Lloyds TSB, said: “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.”
With a 33% rise in house prices since 2005, many areas surrounding the games have seen weekly increases equivalent to £207.
Thiru said the rises “partly reflect 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.”
However, house prices in the East End have still managed to outperform the national market. The 33% rise in house prices seen in the East End since July 2005 is considerably higher than the 24% increase experienced across England and Wales in the same period.
In the last year alone, house prices close to the Olympic site have risen by an average of 1.6%, whereas national house prices have actually fallen by -2.2%.
Barratt said: “The improvement in transport links to the East End of London is likely to have helped support house prices in this part of the capital.”
She added: “Although house prices in the areas closest to the Olympics are not likely to be immune from the headwinds facing the housing market across the country, it is possible that the long-term Olympic legacy…will actually help underpin house prices in the area over the coming years.”
