Property prices in areas surrounding the Olympic Park in London have increased by £1,500 per month since London won the bid in July 2005, new research shows.
This rise is more than twice as fast as seen in the rest of England and Wales and these areas have also outperformed the rest of London since September 2012, according to an analysis by Lloyds Bank.
The average listing price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,191 in July 2005 when the Games were awarded, to £378,884 in March 2015, an increase of 84% or £172,693, which is equivalent to a monthly increase of £1,476.
In comparison in the rest of England and Wales listing values grew on average by 41% over the period from £185,672 in July 2005 to £261,962 in March 2015.
The analysis report says that recent price performance in areas surrounding the Olympic Park also compares favourably with London as a whole. Since the end of the Games in September 2012 the average price in the 14 East London areas has outperformed London with an increase of 33% compared to 25% in the capital as a whole. Over the same period average listing values in England and Wales grew by 12%.
In the past year, house prices in the 14 areas closest to the Olympic Park rose by 13%, from £334,123 in March 2014 to £378,884 a year later, compared to 10% in London. Stratford, where the Olympic Park in located, recorded the largest price growth in the past year, at 22%, followed closely by Plaistow and Walthamstow both at 21%.
‘When London won the bid to host the 2012 Olympic Games many within the organising committee saw this as the perfect opportunity to regenerate the East London area. A decade on, the impact of major investment is there for all to see such as improved rail and tube networks, a high class retail environment and the gradual conversion of the Olympic sites into residential homes,’ said Andy Hulme, Lloyds Bank mortgages director.
‘The improved attractiveness of living is this area of London has resulted in rising listing values. Since July 2005 average house price in the 14 areas closest to the Olympic Park has increased at more than twice the average rate in England and Wales. And, since the end of Games in September 2012 price growth in this area has outperformed London as a whole,’ he added.
The research also shows that since July 2005 five of the 14 areas close to Olympic site have seen their average price rise by over £200,000. Dalston has recorded the largest increase at £285,800, followed by Shoreditch at £261,054, Clapton at £244,591, Bethnal Green at £233,076 and Homerton at £220,761.
Six other areas recorded price increase of at least £100,000 including Walthamstow at £170,006, Leytonstone at £167.559 and Bow at £136,683.
Eleven of these areas now have an average house price of over £300,000 compared with none in 2005. Dalston is the most expensive area with an average house price of £518,035, more than twice the level in East Ham which is the least costly at £241,017.
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Source: Property News Spain