The 2012 Olympic Games has already proved beneficial for East London property prices, even though the event will only occur in two years. Average prices in the region have increased by 26 per cent since the announcement that London would host the event.
The 14 postal districts in closest proximity to the main site of the prestigious event have seen increases, many of which outperformed the average 20 per cent rise across England, according to Lloyds TSB figures. The four best-performing areas showed average property price increases that even outperformed the Greater London average of 36 per cent.
According to a Mortgage Solutions report, Homerton and Shoreditch achieved an average increase of 69 per cent and 53 per cent. Dalston and Clapton achieved 39 per cent each.
The housing economist for Lloyds TSB, Suren Thiru, said: “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.”
Another element of these increases could be ascribed to the expected rental income during the Olympics. A Property Community report, for example, stated that property owners could make an average of ?4,500 when they rent out their homes to visitors in 2012.
The report also stated that many travellers who visit major sporting events increasingly tend to prefer holiday rentals to hotels. Investors and property owners in London therefore will have much to look forward to over the next two years, especially with properties situated close to the key Olympics sites.
