Olympics will boost East London house prices
Property prices in the east London area are set to increase faster than anywhere else in the capital in the run up to the 2012 Olympic Games.
Research for Lloyds TSB found that property prices in 14 postal districts of east London have increased by an average of 26% since it was announced in 2005 that London would hold the 2012 Olympics.
The largest average increase of 69% was seen in Homerton, followed by Shoreditch with a 53% price increase, both of which are in the borough of Hackney where the average house price is now £262,953.
However not all areas of east London have benefitted from the same growth. Stratford- the home of the new Olympic stadium only saw a 3% increase. Plaistow was found to be the least expensive postal district with an average house price of £196,426 followed by West Ham at £203,500.
The increased investment into the area has seen increased interest from both property buyers and investors. The area of east London is set to benefit from upgraded facilities such as a 500 acre Olympic Park, several sporting complexes and updated transport links.
Suren Thiru, housing economists at Lloyds TSB said, “Part of this rise is likely to have been due to an increased interest in property in these locations from both buyers and investors as a result of the associated regeneration taking place.
“Looking forward, property prices across east London are likely to receive a boost from the legacy of improved infrastructure and transport links left by the London 2012.”
This could be good news for buy-to-let investors in the area who could benefit from increased rents. Research from Knight Frank suggests that the number of people looking to rent a property in London has increased by 17% over the last two years.
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