The Olympic Games has had many positive effects on the country already, and one of the most notable has been for property in East London. Since it was announced that the Olympic bid would be going to London, the value of properties in East London has been steadily increasing.
Recent research from the bank, Lloyds TSB, who is an official insurance partner of the Games has shown that the average price of homes near the Olympics has increased by nearly £70,000. All of this increase has occurred since 2005, when the announcement came that London had been awarded the Olympic Games.
The average price of a property in the Olympic area, which is classed as the postal districts closest to the site, stands at just over £273,000. In the past year, 11 out of the 14 closest postal codes have seen increasing the price of property.
Shoreditch, Dalston, and Homerton have shown the largest price rises, which are actually some of the largest on record for the area, with increases of over £100,000 a property in the last seven years alone. Dalston is the area that has the most expensive properties each with a value of over £355,000.
Interestingly, the house prices closest to the Olympic Park, in Stratford, have actually seen a rather limited increase in price. That said, in the past seven years they have seen a significant rise of nearly 15 percent, but it is not quite the level of some other areas near the Games site.
The housing economist for Lloyds TSB is Suren Thiru and he is commented, “The Olympic games is going to leave a legacy, but what is going to be most noticeable among this is going to be the fact that these properties in east London are going to retain their value long after the Olympic Games is finished.”