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House prices soar in Olympic areas

House prices soar in Olympic areas

Friday, 2 February 2007 12:00 AM

House prices in areas close to the site of the 2012 Olympic games have gone up 15 per cent - equivalent to £35,000 - since London won the bid in July 2005, new research shows.

Halifax Estate Agents' study reveals house prices increased most in Leytonstone, up 23 per cent since London won the bid, followed by Hackney (up 21 per cent), Clapton (18 per cent) and Leyton (13 per cent).

Across London as whole, house prices have risen 15 per cent over the same period.

And with just under 2,000 days to go, the Halifax study reveals house price rises are likely to accelerate in the build up to the Olympics.

House price inflation in Barcelona reached 131 per cent in the five years leading up to the 1992 Olympics. Spanish property values rose 83 per cent over the same period.

Halifax also points out for in the Sydney suburb of Homebush Bay, a former industrial area, house prices were up 70 per cent in the five year run-up to the 2000 Olympic games, compared with a 50 rise across Sydney as a whole.

The 2002 Manchester Commonwealth games also spurred redevelopment and rejuvenation of the city centre. House prices rose 102 per cent in the five years leading up to event. There was a 52 per cent rise in prices in the north-west over the same period, and an 83 per cent increase in prices across the UK.

"Hosting an Olympics is usually associated not only with an increase in sporting facilities but also an upgrade of transport and cultural/leisure facilities," Halifax explained.

However, in some areas in or around the Olympic construction area house price rises are still running below the London average, with the main site Stratford, only rising eight per cent since July 2005.

"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," concluded Tim Crawford, Halifax Estate Agents' group economist.