East End house prices continue to benefit from Olympic glow
With just a few days to go before the opening ceremony of the London 2012 Olympic Games, research from Lloyds TSB reveals that homeowners living close to the main site of the London 2012 Olympic and Paralympic Games have seen the value of their home rise by nearly £70,000 since London's winning bid was announced in July 2005. What's more, house prices in the area have outperformed the national market in the past year.
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% (£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 (£273,157) is now almost a fifth (19%) higher than the average England and Wales house price (£230,357), compared with 11% higher in July 2005.
'Olympic' house prices have outperformed the national market over the past year
House prices in the 14 postal districts nearest to the main venue for the London 2012 Olympic and Paralympic Games have risen by an average of 1.6% over the past year, outperforming the 2.2% fall in house prices across England and Wales. Clapton recorded the largest price rise (7.3%), followed by Bow (6.3%) and Shoreditch (5.2%). In contrast, Manor Park recorded the biggest fall (-4.4%). Of the 14 districts, 11 saw prices rise in the past year, in contrast to the national picture.
Homerton sees the biggest house price rise since London awarded the Olympic Games
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 (59% or £126,871), followed by Dalston - also in Hackney - (53% or £123,655) and Shoreditch (52% or £114,009). Plaistow (6% or £10,162) has recorded the smallest increase while Stratford, home of the Olympic Park, has seen just a 14% (£28,537) rise.
House prices are highest in Dalston
Dalston is 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% (£82,806) higher than the average price among the 14 East London postal districts (£273,157). Homerton (£341,823) is the second most costly location. Plaistow is the most affordable postal district with an average house price of £189,167.
Suren Thiru, housing economist, Lloyds TSB, commented: "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."
"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."