Olympic legacy: East End house prices up over £800 a month

June 2011 - Aerial photo of the Olympic Park m...

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With only five months to go before the Opening Ceremony of the London 2012 Olympic Games, new research from Lloyds TSB reveals that the value of homes close to the main site of the London 2012 Olympic and Paralympic Games have increased by over £60,000 on average since London’s winning bid was announced.

The average house price across the 14 postal districts closest to the main site for the London 2012 Olympic and Paralympic Games stood at £268,884 in November 2011, an increase of 30% (£62,739) from the average of £206,145 when London was awarded the Games in July 2005. This is equivalent to a monthly rise of £815. House prices across England and Wales have risen by 25% over the same period which on average is a monthly increase of £611.

Since July 2005, house prices in eight of the 14 postal districts close to Olympic Park have risen by at least 20%. Dalston and Homerton – both in the borough of Hackney – have delivered the fastest growth in house prices, both recording increases of 55% between July 2005 and November 2011. Shoreditch with a 47% (£102,934) increase has seen the next highest rise. Stratford, the focal point for Olympic construction activity, has experienced a 13% (£26,646) rise in its average price to £227,893.

House prices in the postal districts close to the Olympic Park have risen by an average of 0.5% over the past year, greater than the 0.3% fall across England and Wales. However, just two out of the fourteen Olympic postal districts – Dalston (10.3%) and Clapton (7.1%) – have outperformed the average increase across London (5.4%) during the past 12 months. Dalston recorded the largest price rise (10.3%), while Bethnal Green recorded the biggest fall (-5.2%).

The East End remains among one of the most affordable areas in London

Despite these gains, the typical house price among the 14 postal districts close to the Olympic Park (£268,884) is 22% below the London average (£342,551), highlighting the area’s still relatively affordable prices. The most affordable postal district is Plaistow with an average house price of £188,760, which is 45% (£153,791) below the London average. In contrast, Dalston (£359,436) is the most expensive postal district.

Suren Thiru, housing economist, Lloyds TSB, commented:

“Overall house price performance among the postal districts that are in close vicinity to the Olympic park has been generally positive since London’s successful bid in 2005. Some areas close to the main site for the 2012 London Games have experienced a sharp rise in property prices, reflecting increased buyer interest as well as the regeneration taking place there. However, some areas have yet to see as marked an improvement. Over the long term, house prices in the East End of London are likely to be supported by the Olympic legacy of improved infrastructure and transport links.”

Table 1 – % change in house prices in postal districts close to the Olympic Park have since London was awarded the Olympic Games. 

 

Postal District

Jul-05

Nov-11

% Change

£ Change

  Average Price

Dalston

£232,308

£359,436

55%

£127,128

Homerton

£214,952

£332,102

55%

£117,151

Shoreditch

£220,077

£323,011

47%

£102,934

Clapton

£217,900

£314,111

44%

£96,211

Bethnal Green

£228,425

£303,383

33%

£74,959

Leytonstone

£234,232

£304,887

30%

£70,655

Bow

£224,285

£285,163

27%

£60,878

Leyton

£181,039

£217,947

20%

£36,908

Walthamstow

£191,139

£227,036

19%

£35,897

Stratford

£201,247

£227,893

13%

£26,646

Manor Park

£202,244

£226,451

12%

£24,207

Forest Gate

£198,408

£221,412

12%

£23,005

East Ham

£186,808

£200,625

7%

£13,817

Plaistow

£179,005

£188,760

5%

£9,756

East London Average*

£206,145

£268,884

30%

£62,739

England and Wales average

£185,581

£232,592

25%

£47,011

 

Source: Land Registry, Lloyds TSB

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