Olympics effect sends East London prices soaring
Anyone that bought a pad in East London before London won its bid to host the 2012 Olympics, will now definitely be having the last laugh, as new figures reveal that property prices in the area have skyrocketed by 26 percent since the triumph was announced.
With two years until the opening ceremony London comes over all Lord of the (Olympic) Rings for the London 2012 Games, Lloyds TSB research has measured house price performance in the fourteen postal districts located close to the Olympic Park.
Some parts of London close to the main site for the London 2012 Olympic and Paralympic games have seen a sharp rise in house prices since the capital was awarded the Games in July 2005. Homerton and Shoreditch – both in the borough of Hackney – have seen average prices rise by 69 per cent and 53 per cent respectively, significantly above the Greater London average of 36 per cent.
East London will see a massive upgrade in facilities as a result of the hosting of the Olympic and Paralympic Games. The area will benefit from a 500 acre Olympic Park reaching from the Hackney Marshes to the Thames, which will include an Olympic stadium, aquatic center, along with several other sporting complexes and a 17,800 person Olympic village.
Significant transport improvements are also taking place – investment is trebling the capacity of Stratford Regional Station, the main transport hub for London 2012 which is expected to accommodate 120,000 passengers and enable 200 trains every hour during the Games. A range of other transport improvements serving the Park are already underway, including an extension to the Docklands Light Railway (DLR) and increasing capacity to the Jubilee Line.
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.
The picture, however, is mixed. Things aren’t so rosy over in Stratford, the location of the Olympic stadium – which has been a whopping great building site for a few years now. Stratford saw a meager three per cent rise in average prices, a far smaller increase that any of the other postal districts.
Perhaps this is indicative of people wanting to be close the Olympic effect, but not right in the heart of it. After all, the stadium will remain after the Games have finished and this may put people off living close to a major sporting venue or tourist draw card that will attract crowds and noise.
Suren Thiru, housing economist at Lloyds TSB said, “Some areas close to the Olympic Park have experienced a sharp rise in property prices since London’s successful bid to host the 2012 Olympic and Paralympic Games. 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.”
“Looking forward, property prices across East London are likely to receive a boost from the legacy of improved infrastructure and transport links left by the London 2012 Olympics.” (What Mortgage magazine).
Other News
Yorkshire Building Society has launched two new best buy mortgage deals for people who need to borrow up to 90% of the value of their home.
For those who would like a little extra help with the initial costs of their mortgage, similar products are also available at 5.19% fixed for two years or 5.89% fixed for three years. Both products carry a £495 fee and include a free standard valuation and free legal service for those buying a property, or free standard valuation and £250 cash back for those looking to remortgage.
Tom Girling, product manager for mortgages said: “Both our two and three-year fixed rate deals offer fantastic value to borrowers with a 10 per cent deposit – an area of the market where only a handful of other lenders area currently striving to offer competitive deals.
“At Yorkshire, we’re trying to help as many people as possible obtain a mortgage and offering fixed rate loans to borrowers with a 10 per cent deposit is just one of the many steps we have taken to diversify our product range.
However, by ensuring we only offer fixed rates in this area we can make sure our borrowers have piece of mind when it comes to their mortgage payments whether they are looking to buy their first property or remortgage.”
(for different types of mortgages in the UK see previous blog)
No comments yet.