45% house price growth for Olympic Park postcodes

London Olympic Park
David Burrows / Shutterstock.com

Homeowners in the 14 postal districts in East London closest to the Olympic Park have seen the average value of their property rise from £206,154 in July 2005 to £298,6032 in March 2013.

This represents growth of 45% (£92,000) over the period, equivalent to a monthly increase of £994.

Property values in areas surrounding the Olympic Park have outperformed national markets over the same period. The average house price in England and Wales grew by nearly a third (29%) from £185,642 to £239,887 in the eight years to March 2013.

Price growth in East London areas also outperformed Greater London as a whole during the period by 35%. The findings show price differential narrowed in the eight years, with average property values in areas close to the Olympic Park 19% lower than the rest of London, compared to 25% in 2005.

The house price premium between the average in the 14 East London areas and the rest of England and Wales has more than doubled from 11% in July 2005 to 24% in March 2013.

In the past year, house prices in the 14 areas closest to the Olympic Park rose by 10%, from £271,509 in March 2012 to £298,603 a year later, compared to just over 4% for England and Wales. Manor Park and Clapton have recorded the largest price growth since March 2012, 17.4% and 16.8% respectively.

Five of the 14 areas closest to the main site have seen their average house price rise by over £115,000 since London won the bid to hold the Games. Daltson recorded the largest increase (£165,606), followed by Homerton (£161,147), Shoreditch (£151,487), Clapton (£147,828) and Bethnal Green (£116,709).

Seven of the 14 areas closest to the Olympic Park now have an average property value of over £300,000. These include Daltson (£397,914), Homerton (£376,419), Shoreditch (£371,564) and Clapton (£365,728). The most expensive area in July 2005 was Leytonstone with an average property price of £234,239.

The most affordable area is Plaistow (£193,159), followed by East Ham (£207,888) and Forest Gate (£228,839).

Nitesh Patel, housing economist at Lloyds TSB, said: “The regeneration of East London as a result of winning the bid to host the 2012 Olympic and Paralympic Games has seen large investment in infrastructure, rail and tube networks. A major shopping mall served the Games and importantly, the wider area over the longer term.

“Homeowners in the 14 postal areas closest to the Olympic Park have seen the average value of their homes rise by £1,000 per month since July 2005. Prices in this part of East London have, on average, increased at a faster rate than in England, Wales and Greater London as a whole. The impact on future property values will continue to depend on how the Olympic site is transformed as a place for the community.”

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