Three years on from the London 2012 Olympic Games, the latest research from Lloyds Bank shows that house prices in areas close to the Olympic Park have continued to rise.
The average property price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,191 in July 2005 – when the Games were awarded to the capital – to £378,884 in March 2015 – an increase of 84% or £172,693, which is equivalent to a monthly increase of £1,476.
This rise is more than twice as fast as seen in England and Wales; nationally property values grew on average by 41% over the period – from £185,672 in July 2005 to £261,962 in March 2015.
Recent price performance in areas surrounding the Olympic Park also compares favourably with London as a whole. Since the end of the Games in September 2012 the average price in the 14 East London areas has out-performed London with an increase of 33% compared to 25% in the capital as a whole. Over the same period average property values in England and Wales grew by 12%.
In the past year, house prices in the 14 areas closest to the Olympic Park rose by 13%, from £334,123 in March 2014 to £378,884 a year later, compared to 10% in London. Stratford, where the Olympic Park in located, recorded the largest price growth in the past year, at 22%, followed closely by Plaistow and Walthamstow (both 21%).
Andy Hulme, Lloyds Bank mortgages director, said: “When London won the bid to host the 2012 Olympic Games many within the organising committee saw this as the perfect opportunity to regenerate the East London area. A decade on, the impact of major investment is there for all to see; improved rail and tube networks, a high class retail environment and the gradual conversion of the Olympic sites into residential homes.
“The improved attractiveness of living is this area of London has resulted in rising property values. Since July 2005 average house price in the 14 areas closest to the Olympic Park has increased at more than twice the average rate in England and Wales. And, since the end of Games in September 2012 price growth in this area has out-performed London as a whole.”
Since July 2005 five of the 14 areas close to Olympic site have seen their average price rise by over £200,000. Dalston has recorded the largest increase (£285,800), followed by Shoreditch (£261,054), Clapton (£244,591), Bethnal Green (£233,076) and Homerton (£220,761). Six other areas recorded price increase of at least £100,000; including Walthamstow (£170,006), Leytonstone (£167.559) and Bow (£136,683).
11 of these areas now have an average house price of over £300,000 compared with none in 2005. Dalston is the most expensive area with an average house price of £518,035 – more than twice the level in East Ham (£241,017), which is the least costly.