House prices near Olympic Park race ahead, thanks to London 2012 Legacy
05 August 2016
- Prices in surrounding areas grow three times faster than the national market and outpace rest of London
- Homes closest to Olympic Park add more than 50% to their value - up by £3,522 per month since Games ended in 2012
- Majority of areas close to the main site record price growth in excess of £100,000 since September 2012
With the Rio 2016 Olympic Games about to get underway, the legacy of London 2012 lives on, as the latest research on house prices from Lloyds Bank reveals those living closest to the Olympic Park are the biggest winners.
The study shows that average property prices in the 14 postal districts1 in East London closest to the Queen Elizabeth Olympic Park have risen from £286,638 in September 2012 (at the close of the Paralympic Games) to £438,065 in March 2016 – an increase of 53% or £151,427, equivalent to a monthly rise of £3,522.
This is more than three-times the rate of increase seen in England and Wales; nationally property values grew on average by 17% over the same period - from £234,947 to £275,872. (See Table 1)
Price performance in the 14 East London areas has also outpaced London as a whole. Since September 2012 the average price in the capital has grown by 32% to an average price of £557,359.
In the four years since the last Olympic Games, the average price in all but one of the 14 areas has risen by over £100,000. In cash terms the largest rise was seen in trendy Shoreditch, where the average property price has grown by £245,330, followed by Dalston (£203,113), Homerton (£197,737) and Bethnal Green (£178,893). East Ham recorded the lowest rise in prices, a relatively modest increase of £83,566 in four years.
Nitesh Patel, Lloyds Bank Housing Economist, said: "The last Olympics Games, held in London, was a great event which captured the world’s attention for a few weeks in 2012, but the longer term benefits of the Games are still being felt today, particularly for homeowners in the areas close to the Olympic Park who have seen property prices outperform both the national and London markets.
"Since the Games closed in September 2012, average house prices in the 14 areas of East London close to the Olympic Park have increased three-times faster than in the rest of England, equivalent to an increase of £3,522 per month. Regeneration in this part of the capital has seen significantly improved transport connections and facilities, which have helped attract businesses and households to the area and in turn boosted local property values."
Average house price more than doubled since Games were awarded to London in July 2005
In the eleven years since the Games were awarded to London in July 2015, the average property price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,398 to £438,065 in March 2016 – an increase of 112% or £231,667, which is equivalent to a monthly increase of £1,796. Again this has significantly out-performed the increase in England and Wales; nationally property values grew on average by 48% over the same period - from £185,783 in July 2005 to £275,872 in March 2016. (See Table 2)
In the past year, house prices in the 14 areas closest to the Olympic Park rose by 15%, from £379,663 in March 2015 to £438,065 a year later. Plaistow recorded the largest price growth in the past year, at 21.5%, followed by Homerton (20.8%), marginally ahead of Shoreditch (20.3%) and Leyton (19.6%).
Five areas close to the Olympic site have an average house price in excess of over £500,000
Since July 2005 five of the 14 areas close to the Olympic site have seen their average price rise to over £500,000. Shoreditch has recorded the largest increase (£360,880) to a current average price of £583,634, followed by Dalston (£579,069), Homerton (£525,577), Clapton (£518,444) and Bethnal Green (£515,701).