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Olympic legacy adds £125,000 to house prices

From Property Talk Live on July 29, 2014

To celebrate the second anniversary of London 2012 Olympic Games opening ceremony, the latest research from Lloyds Bank looks at house price performance in areas close to the Olympic Park since the Games were awarded to the capital in July 2005.

Homeowners in the 14 postal districts in East London closest to the Olympic Park have seen the average value of their property rise from £206,191 in July 2005 to £334,1232 in March 2014. This represents growth of 62% (£127,933) over the period, equivalent to a monthly increase of £1,214.

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 a third (34%) from £185,662 to £248,597 in the eight years to March 2014. In cash terms, the increase in average house price in the Olympic areas (£127,933) is more than double the growth seen in England and Wales (£62,935).

The house price premium between the average in the 14 East London areas and the rest of England and Wales has more than trebled  from 11% in July 2005 to 34% in March 2014.

Since 2012 property values in Olympic areas outpace both London and national markets

Since 2012, house prices in the 14 areas closest to the Olympic Park rose by 23%, from £272,750 in March 2012 to £334,123 in March 2014, compared to just over 8% for England and Wales. Whilst in London as a whole prices have grown by 17% in the same period. In Shoreditch, Daltson and Walthamstow, average property values have seen the best performance rising by close to a third.

Eight areas close to the Olympic site see average price rise by over £100,000 since July 2005

Eight of the 14 areas closest to the main site have seen their average house price rise by over £100,000 since London won the bid to hold the Games. Daltson recorded the largest increase (£236,558), followed by Shoreditch (£209,460), Homerton (£176,275), Clapton (£175,767) and Bethnal Green (£166,760).

Half of the areas closest to the Olympic Park now have an average house price of over £325,000 – there were none in July 2005

Seven of the 14 areas closest to the Olympic Park now have an average property value of over £325,000. These include Daltson (£468,792), Shoreditch (£429,537), Bethnal Green (£395,184), Clapton (£393,616) and Homerton (£391,227). In July 2005 none of 14 areas had an average house price above £235,000.

The most affordable area is Plaistow (£207,004), followed by East Ham (£210,504) and Manor Park (£247,110).

Nitesh Patel, Housing Economist at Lloyds, said:

“Since winning the bid to host the 2012 Olympic and Paralympic Games nine years ago, average property values in the 14 surrounding areas have grown by close to two-thirds. These areas have been bolstered by large scale investment in public transport, new property development and the creation of a high-end retail environment making this one of the fastest evolving areas in London.”

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Source: Property Talk Live