25 Jul

Houses for sale in East London benefit from Olympics

Houses for sale in East London benefit from Olympics

Houses for sale in London are doing particularly well out of the forthcoming Olympic Games, says new research from Lloyds TSB.

According to the study, homeowners who live close to the main site for the 2012 games have seen the value of their properties rise by an average of nearly £60,000 since the news that London would host the games was announced in July 2005.

This represents a weekly increase of £192 for property for sale in London located near the games site.

Regionally, Homerton and Dalston saw the steepest price rises at 56 per cent and 52 per cent respectively, while those in East Hame and Plaistow were less fortunate at eight per cent.

Meanwhile, Stratford, where the Olympic stadium is located, saw a 13 per cent rise in house rises between 2005 and 2011, less than half the average increase across East London as a whole.

"Interest in the East London housing market from both buyers and investors has increased markedly since London was awarded the 2012 Olympic and Paralympic Games, partly reflecting the substantial regeneration taking place there," said Suren Thiru, housing economist at Lloyds TSB.

"However, despite this, house price performance in the postal districts closest to the main site of the Games has been rather mixed with some of these areas recording significantly larger house price increases compared to neighbouring districts."

Looking to the future, Mr Thiru said the long-term Olympic legacy in the east of the capital is likely to underpin the values of houses for sale in London for some years to come.

Nationally, the latest UK house price index from Communities and Local Government shows that in May, house prices decreased by 1.6 per cent year-on-year.

This left the average mix-adjusted UK house price at £203,528, while prices for new properties were 7.8 per cent higher on average.ADNFCR-1222-ID-800633549-ADNFCR

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