Homeowners living close to Olympic Park have gained with property prices up 64% in five years outperforming the London average.
Research by the Halifax shows property prices of the 14 districts in East London closest to the Olympic Park have increased 64% or £184,004 since September 2012 with an average price of £470,687 in April 2017.
The growth in the 14 East London areas has outperformed London as a whole over the last five years where the capital has seen a rise of 38% or £160,986 and current property values of £584,190.
Rising prices gives remortgage buyers living near the Olympic Park an opportunity to release capital which they can use to improve their home such as an extension, further raising their property value.
Walthamstow leads as prices double
Since the London 2012 Olympics, average house prices in the borough of Walthamstow have doubled from £238,348 to £479,421.
This is an increase of £241,073 or 101% over five years and is the fastest rise among the 14 East London areas located close to the Olympic Park.
For home movers to areas in East London the gap between their current home and the next may increases significantly which means they would need to arrange a larger mortgage.
The following table from the Halifax shows house price growth over five years from 2012 to 2017 in UK regions.
| Postal District |
Average Prices |
5-year change |
|---|---|---|
| Walthamstow | £479,421 | 101% |
| Leyton | £429,380 | 93% |
| Forest Gate | £422,868 | 81% |
| Manor Park | £386,237 | 73% |
| Plaistow | £330,459 | 73% |
| Homerton | £560,749 | 71% |
| Clapton | £574,332 | 68% |
| Shoreditch | £568,355 | 68% |
| Bow | £478,701 | 68% |
| East Ham | £330,152 | 63% |
| Leytonstone | £506,352 | 56% |
| Dalston | £376,003 | 55% |
| Bethnal Green | £522,255 | 55% |
| Stratford | £363,221 | 55% |
Other than Walthamstow, five other areas have price rises of more than £200K including Homerton with a gain of £232,909, Clapton an extra £231,488, Shoreditch gaining £230,051, Dalston up £207,297 and Leyton gain of 206,876.
For older homeowners in London boroughs increased property values allows the equity release mortgage buyer to access wealth and maintain their lifestyle, repay an interest only mortgage or home improvements.
The strong growth in house prices means for these East London areas means first time buyers would require a larger deposit or higher earnings to purchase their first home.
Large investment in East London
Homeowners in East London has benefited considerably from infrastructural investment due to the London hosting the 2012 Games.
Martin Ellis Housing Economist at Halifax said, regeneration has boosted the area around the Olympic Park including investment in existing tube networks, an international station and now Crossrail.
This has created jobs in the area and improved options for people to move around the capital reinvigorating the local community.
Homeowners in the 14 East London districts have seen average property values increase by more than £4,000 per month since the Paralympic Games ended in 2012, racing ahead of England, Wales and even Greater London, says Mr Ellis.
Over a longer period of time from July 2005 to April 2017 four districts have increased in excess of £300,000 in value since the Olympics and all districts have gained at least £140,000.
For buy-to-let landlords with existing properties the rise in house prices creates more equity which they can benefit from if they sell in the future.
The biggest improvement in property values is Clapton rising 164% or £356,944 followed by Dalston up £352,148, Homerton gaining £346,175 and Shoreditch up £345,527 in twelve years.
What are your next steps?
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