East London house prices given Olympian boost
Property prices in east London are soaring by £192 a week, according to Lloyds TSB.
The average property close to the London 2012 Olympic site has risen nearly £60,000 in value, a 28% increase, since the capital was awarded the games in 2005. The average house price in the area is now £266,730.
Of the postal districts, Homerton, Dalston and Bethnal Green have recorded the biggest price increases over the past six years, with property adding £100,000 in value.
Homeowners in Homerton and Dalston, both in the London borough of Hackney, have seen the largest property price rises, of 56 and 52% respectively.
The average price of a house in Dalston, the most expensive Olympic area, is now £349,004. Homerton, the second most expensive, boasts an average property price of £337,331.
Conversely, East Ham and Plaistow have recorded a price rise of only 8% since July 2005. House prices in Stratford, where the Olympic stadium is situated, have only increased by 13% over the period - less than half the average increase across east London.
On an annual basis, prices in Dalston have risen 13%, while Shoreditch is the biggest loser, with prices dropping 4%.
However, the average London 2012 house price is still lower than the average house price for London, sitting at £418,487.
Suren Thiru, housing economist at Lloyds TSB, comments that interest in the east London housing market has "increased markedly" since the capital was awarded the games, reflecting the regeneration in the area.
"However, despite this, house price performance in the postal districts closest to the main site of the games has been rather mixed with some of these areas recording significantly larger house price increases compared to neighbouring districts," he says.
He expects the trend to continue: "Looking ahead, the long-term Olympic legacy for east London of improved infrastructure and transport links is likely to help underpin house prices in the area over the coming years."
This article first appeared on our sister website, Money Observer.