Olympic Games help speed up the property market?
Lloyds TSB have reported a 28 per cent average increase for property prices in the areas nearest the Olympics sites.
Property in these sought after areas have enjoyed an average price increase of £60,000, from £208,148 to £266,730, since London was named as hosts.
Whilst these figures may suggest these properties are leading the conveyancing race, they are, in fact, way off a medal winning position.
The research, conducted by the 2012 Games main sponsor, analysed property prices in 145 areas of London with the highest ranked Olympic area – Homerton, Hackney - coming in at a lowly 44th place, while 7 of the bottom 20 areas were areas near the Games sites.
Stratford, home of the Olympic Stadium, saw an average 13 per cent increase in property values.
House prices in London have continued to defy the worldwide property slump. While the rest of Britain peaked in April 2010, London was the only area of the country to report a rise in prices, Housing Expert, Ian Perry pointed out.¹ Last year, the Capital enjoyed a 6.1 per cent increase.
Yet despite this, there is still much hope for these regenerated areas. A spokeswoman for Lloyds TSB said:
“They say that after the Olympics arrive, that's when we will see the investment pay off. Who's to say that without that investment [the prices in these areas] wouldn't have been further down the table? It's a long term thing.”²
Or in other words, it’s a marathon, not a sprint.
¹The Independent (April 2011)
²The Guardian (July 2011)
Content correct at time of publication