East End house prices get Olympic boost
The average home in east London has risen in value by almost £70,000 since it was announced that London had been awarded the Olympic Games back in July 2005.
The research from Lloyds TSB reveals that house prices near the Olympic Park have rocketed by more than £200 a week over the past seven years.
The average house price across the 14 postal districts closest to the main Olympic site is £273,157, an increase of 33% since 2005. In comparison, the average home in England and Wales sells for £230,357.
The largest Olympic gain has been experienced by Homerton, which has seen house prices soar by a staggering 59% since the Olympics were awarded to London.
The most expensive part of east London surveyed by Lloyds TSB is Dalston in Hackney, where the average home costs £355,963. Dalston has seen a price rise of 53% over the past seven years.
However, Stratford, home of the Olympic Park, has seen a much smaller rise, of just 14%.
Suren Thiru, housing economist at Lloyds TSB, comments: "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."
The Olympics and Paralympic Games have prompted a huge transformation of much of east London. The Olympic Park will be renamed the Queen Elizabeth Olympic Park after the Games have finished, and will become a massive sporting venue for the local community, as well as elite athletes.
Stratford has also gained a new Westfield shopping centre, which is Europe's largest urban shopping centre.
The Olympic Delivery Authority says 75 pence of every £1 spent on the 2012 Games was an investment in the long-term transformation of the area.
Thiru adds: "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."
According to the research, Plaistow is the cheapest part of east London to buy a home, where the average house price is £189,167. This is below the average for England and Wales. House prices have only increased 6% in Plaistow since July 2005.
This article was written for our sister website Money Observer