Some parts of London close to the main site for the 2012 Summer Olympics have seen a sharp rise in house prices since the capital was awarded the Games in July 2005. Homerton and Shoreditch – both in the borough of Hackney - have seen average property prices rise by 69% and 53% respectively, significantly above the Greater London average of 36%.
There has, however, been a mixed performance in property prices with Stratford, the home of the venue for the Olympic Stadium, seeing only a 3% increase in average prices, slower than any of the other Olympic postal districts.
Suren Thiru, housing economist, Lloyds TSB, said:
"Some areas close to the main Olympic site have experienced a sharp rise in property prices since London's successful bid to host the 2012 Olympic games. Part of this rise is likely to have been due to an increased interest in property in these locations from both buyers and investors as a result of the associated regeneration taking place. The picture, however, is mixed.
"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."
Average prices in the fourteen postal districts located close to the Olympic site have risen by over a quarter (26%) since July 2005. This exceeded the average rise of 20% across England, but was below the London average of 36%.
Four out of the 14 Olympic postal districts saw house prices rise by more than the average for London (36%). House prices in the Olympic areas have bounced back strongly from the downturn in the housing market, rising by 13% between April 2009 and April 2010. This was almost three times the average rise across England (5%), but slightly lower than the London average (16%).
The average house price among the Olympic postal districts is £262,953. The least expensive postal district is Plaistow with an average house price of £196,426, followed by East Ham (£203,500) and Leyton (£209,769).
