Any investor seeking Olympic property gold should give the heart of the 2012 Games site a miss, recent research reveals. Instead, buyers are set to make impressive gains in the areas bordering the east London sports festival complex.
While house prices in Stratford have nudged up a meagre three per cent during the five years since London was awarded the Olympics, Homerton has seen a 69 per cent leap, Dalston and Clapton are up 39 per cent, Bow 32 per cent and Leytonstone 25 per cent.
A study of 14 east London postal districts shows prices, on average, have increased by 26 per cent since July 2005 - from £209,170 to £262,953. Prices in Stratford, by contrast, have crept from £206,211 to £212,217, based on Land Registry data.
With its 500-acre Olympic Park and 3,000-home Olympic Village, Stratford is at the epicentre of the regeneration. The local property market boomed in the immediate aftermath of the 2012 announcement as developers and buy-to-let investors piled in. But the banking crisis took its toll and values fell back before recovering a little earlier this year. It is the fear of an over-supply of new “Olympic” apartments that is keeping a lid on prices.
Suren Thiru, housing economist at LloydsTSB, which conducted the research, says: “The picture has been mixed but long-term prices across east London are likely to receive a further boost from the Olympics legacy.”
Stratford remains a mini city in the making. More than 16,000 new homes are earmarked for the area. Stratford City, Europe’s biggest shopping centre, opens next year. But despite this and excellent transport links, for many the area is not yet enticing enough, while more established districts nearby appear a safer bet in the long term.