House prices have risen in East London since the Olympics were announced – but some neighbourhoods are benefiting more than others, while many areas have failed to keep pace with the rest of the capital.
A new report, produced by Lloyds TSB, found that average property prices in East London have risen by 26% since the announcement in 2005 that the area will host the 2012 Olympics.
However, this compares relatively poorly with an average increase of 36% across Greater London.
Only four areas in East London saw property price increases above this benchmark over the five year period – all of which were in Hackney.
In Homerton, prices have increased by an impressive 69%, while fashionable Shoreditch recorded a rise of 53%.
Dalston and Clapton each saw average prices grow by 39%.
Lloyds TSB housing economist Suren Thiru attributed the increases to the effect of the Games, commenting: “Some areas close to the main Olympic site have experienced a sharp rise in property prices since London’s successful bid to host the 2012 Olympic Games.”
“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.”
However, the Hackney neighbourhoods showing greatest property price increases are not those closest to the Olympic site.
Furthermore, other factors may explain their good economic performance, including recent gentrification and improved transport links including the East London Line upgrade – the latter having reportedly already boosted house prices in areas such as Crystal Palace and Brockley.
Meanwhile, Stratford, where the main Olympic facilities are being built, has performed particularly poorly, experiencing an average house price increase of a meagre 3% – confounding predictions that the area would see above-average increases.
This news is likely to compound the complaints of critics who have argued that the Olympics have provided little of the regeneration originally promised.
But Thiru, remaining optimistic, concluded: “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 games.”
You can read our article about the impact of the Olympics on local jobs here.