Property prices set to rise in Olympic Park

Areas of east London surrounding the redevelopment area for the 2012 Olympics are set to benefit from a £100,000 increase in property values.

Up to 9,000 new homes will be built in the lower Lea Valley area of London, site of the new Olympic Park, along with five new sports facilities and 31 new bridges.

And the surrounding areas are set to benefit, according to estate agent Ludlow Thompson.

"We've seen house prices rise, around Walthamstow and surrounding areas," commented Natalie Churchman, sales manager for Ludlow Thompson.

"We've had a rise all over London, but I think Walthamstow will continue to rise, and perhaps it's risen more than some more established areas in London because of the Olympics."

The area is now proving attractive to professional first-time buyers, drawn by affordable property prices and good transport links.

Expansion of the East London Line, scheduled to open in 2010, linking the area with West Croyden and Dalston Junction, and possible Crossrail developments will both improve connections.

"Transport is always a key thing for first-time buyers," continued Ms Churchman.

"They're commuters, they want to get into town where they're working, be it the west end or the City. So improved transport is again attracting more buyers, the area becomes more popular, and then prices rise."

Further afield other areas are also set to benefit.

"Towards Wanstead, you've got quite good transport and things are a bit more affordable.

"I expect prices to continue to rise; there are lots of new developments bought on by the Olympic bid and modern houses being built. I think once these have actually gone up prices will continue to rise because the value of a brand new build always commands a premium.

"If you've got a modern, two-bed apartment, you could command £300,000 to £350,000, where perhaps at the moment a two-bedroom apartment would get £250,000," concluded Ms Churchman.