London house prices win 2012 Olympics gold

London house prices are set to soar in areas near the 2012 Olympic Games site

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Friday, 02, Feb 2007 10:59

House prices are set to soar in areas of London near the site of the 2012 Olympic Games, if past tournaments are anything to go by.

With around 2,000 days to go until the event kicks off, research from Halifax Estate Agents shows London postal districts close to the 2012 Olympics site have already risen by more than 15 per cent since the International Olympic Committee awarded the games to the British capital.

Leytonstone has seen a 23 per cent rise, adding £50,714 to the price of an average property, since mid 2004. Hackney comes second with a 21 per cent rise (£48,578) with Clapton picking up the bronze medal with an 18 per cent (£38,895) increase.

But these are not the only regions to benefit - with seven areas near the Olympic site seeing house prices rise more than ten per cent since spring 2006.

And this is set to continue if past Olympics are anything to go by.

House prices in each of the last four host cities (Barcelona, Atlanta, Sydney, Athens) have risen faster than the national average in the five years leading up to the games.

On average host cities have seen property values increase 66 per cent in this period, 40 per cent faster than the average rise in the host country.

"London's winning Olympic bid has boosted regeneration spending in the east end and this has had a positive effect on local house prices," said Halifax Estate Agents economist Tim Crawford.

"There has been an increase in interest from first-time buyers and investors alike."

And Britons do not need to spend big to live within a javelin's throw of the Games.

"Despite recent rises, there are eight postal districts close to the Games site where house prices are more than 25 per cent below the London average, which highlights the area's still relatively affordable property prices."

The cheapest place to buy near the 2012 Olympic site is Plaistow - with an average house price of £196,263. East Ham is second cheapest at £207,543 and Leyton comes in third at £210,599.