House prices in East London have not received a golden glow from the Olympics effect.
They have gone up by an average of nearly £60,000 since London was awarded the Olympic Games in July 2005.
But in percentage terms, the East End has done no better than the rest of England and Wales, and has fared much worse than most of London.
According to calculations by Lloyds TSB, average prices in the 14 postal districts closest to the main site for next year’s Games rose by 28%, exactly the same rise as across England and Wales, and much less than the 48% average house price increase in London for the same period.
The average house price in the East End has gone from £208,148 in July 2005 to £266,730 in May 2011 – the equivalent of a weekly increase of £192.
But the figure of £266,730 compares with the average price for London as a whole of £418,487.
In three of the 14 postal districts, house prices have risen by over £100,000. But in East Ham and Plaistow, prices have risen by just 8%, and Stratford – home of the Olympic Stadium – prices have gone up by only 13%.
Suren Thiru, housing economist at Lloyds TSB, said: “Looking ahead, the long-term Olympic legacy for East London of improved infrastructure and transport links is likely to help underpin house prices in the area over the coming years.”
The bank is a partner of the Olympic Games.
Comments
Brian - I believe you're correct....
It's always been branded as the 'Olympics effect' - such as transport and re-generation. Of course the actual event itself is not going to affect house prices drastically, but the developments that came with it were hoped to.
Although, I know a family who are renting out their home to athletes (they live close to one of the water venues) for £8k for 2 weeks....
2 week 5* holiday for £3k and a tasty profit!
After the current London riots Who in their right mind would attend the Olyimpics anyway? im afraid it could well be an opportunity for these yobs and terrorists. It is very sad what our country is turning into, bring back national service and introduce watercannon, we are too soft it is now time for our great country to be brought to order.
Not sure anyone was suggesting the "event" was the reason for increase, but surely the improvement in transposrt and regeneration of the area is what is key? But maybe its me being stupid rather than Neil?
Not sure why an event that's going to last about a month would have such an effect anyway? Even if it did, once the Olympics were done and dusted, surely prices would crash?
Biggest load of overhyped nonsense EVER.