House prices near Olympic Park soar 45% as London firms consider leaving the capital

If you still think that East London is a no-go area then you, dear reader, are missing out.

Why? Well, houses around the Olympic Park have increased by 45% since 2005.

A study by Lloyds TSB out today has found that price growth in East London beat Greater London as a whole by 35% in the eight-year period.

When London won the bid to host the Olympics, homes in the 14 postal districts closest to the park were worth £206,154 on an average. But as of March 2013, the value had increased by £92,000 to £298,603.

Dalston, Homerton, Shoreditch and Bethnal Green saw house price increases of more than £115,000 since 2005. Out of the four, Dalston emerged as the winner recording the highest price increase at £165,606.

Manor Park and Clapton recorded the highest price growth since last year at 17.4% and 16.8% respectively.

Nitesh Patel, a housing economist at Lloyds TSB, said: “The regeneration of East London, as a result of winning the bid to host the 2012 Olympic and Paralympic Games has seen large investment in infrastructure, rail and tube networks. A major shopping mall served the Games and importantly, the wider area over the longer term.

“Homeowners in the 14 postal areas closest to the Olympic Park have seen the average value of their homes rise by £1,000 per month since July 2005. Prices in this part of East London have, on average, increased at a faster rate than in England, Wales and Greater London as a whole.

“The impact on future property values will continue to depend on how the Olympic site is transformed as a place for the community.”

Separately, a CBI/KPMG London business survey found that London companies chasing growth are looking to expand overseas and not in the capital.

High operating costs and London’s housing shortage have been cited as the biggest worries for respondents that wanted to scale their business.

Companies planning to expand in London fell from 54% to 29% last year. On the other hand, companies planning to expand overseas rose from 27% in December 2012 to 45% today.

Sara Parker, CBI director for London, said: “It’s encouraging that more London firms plan to expand but worrying that fewer expect to do so in the capital.

“Some of the perennial challenges of doing business in the capital, like high operating costs, housing shortages and transport challenges, threaten to undermine investment confidence.”

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