With only two years to go until the 2012 Olympics kick off, figures show that house prices in east London have risen sharply since the capital was awarded the Games five years ago.
Lloyds TSB has measured prices for the 14 postal districts around the main Olympic site with results showing a 26% average house price boost since the Olympic victory announcement in July 2005.
In David Cameron’s first speech as prime minister in May he said: "Let's make sure the Olympics legacy lifts east London from being one of the poorest parts of the country to one that shares fully in the capital's growth and prosperity." The hike in house prices could be the first step in making Cameron’s dream a reality.
The areas of Homerton and Shoreditch, in the borough of Hackney, have come out on top in the Olympic house price gains: average prices have risen by 60% and 53% respectively since 2005.
The average house price across the 14 districts is now £262,953. However, other postcodes in the area have not benefited from the same growth. Stratford – the home of the new Olympic stadium – only saw a 3% increase and the least expensive postal district is Plaistow where the average price is £196,426, followed by East Ham.
Suren Thiru, housing economist at Lloyds TSB, says the ‘picture is mixed’ across east London with some areas closest to the Olympic site seeing a sharp rise but others, like Stratford, being left out of the increase.
"Looking forward, property prices across east London are likely to receive a boost from the legacy of improved infrastructure and transport links left by the London Games," Thiru adds.
The entire area of east London stands to benefit from a massive upgrade in facilities including a 500-acre Olympic Park, which will stretch from Hackney Marshes to the Thames, and several other sporting complexes. Transports links are also being updated with extensions to the Docklands Light Railway and Jubilee Line.
The government recently made cuts of £27 million to the budget of the Olympic Delivery Authority, the body responsible for building the venues. However it’s not thought this will affect the overall construction and infrastructure budget, which currently stands at £9.3 billion.