New figures from UK bank Lloyds TSB show those homes closest to the Olympic sites have seen their value increase by an average of more than £60,000 since London won the bid in July 2005, according to a report in Property Wire.
There are 14 postal districts closest to the main site of the games, and the average house price was £268,884 last November, which is an increase of £62,739, or 30% since the winning bid was announced. This equates to a monthly increase of £815. In contrast property prices throughout England and Wales have increased by an average of £611 a month, or 25% during the same period.
Since the announcement was made that London would host the 2012 Olympic Games, prices in eight out of the 14 postal districts closest to the Olympic Park have risen by at least 20%. However some areas have increased substantially more, as prices in Dalston and Homerton have risen by an amazing 55%. Property prices in Shoreditch have risen by 47%, which equates to an increase of £102,934, but prices in Stratford have risen by just 13% to reach an average price of £222,893, as this is the site closest to the Olympic construction activity.
Last year property prices in those postal districts closest to the Olympic Park rose by an average of 0.5%, while property prices across the rest of England and Wales fell by an average of 0.3%. Prices in London increased by 5.4% during the last 12 months, but they were outperformed by prices in Dalston which rose by 10.3% and Clapton where they increased by 7.1%. However property prices in Bethnal Green fell by 5.2%.
Although house prices have risen substantially since London’s successful bid, the average house price in the 14 postal districts closest to the Olympic Park is still 22% less than the London average, and the area is still relatively affordable. While some property prices have increased substantially due to the regeneration taking place in their area, others have yet to benefit and homes in Plaistow are the most affordable with an average house price of just £188,760. This is £153,791 less than the average London house price of £342,551. Overall it is expected that property prices in the East End of London will increase to be more in line with the average house price due to the Olympic legacy of improved transport links and infrastructure.