What legacy have the Olympics left for London’s property market?

london property market – The Olympic and Paralympic Games have brought East London to the attention of the world and acted as a catalyst for the physical transformation of the area.

 

london property market

london property market – Newham, which is one of six dedicated Olympic host boroughs in East London, has decreased in value by 8.66% over the last 5 years according to property website Zoopla. Despite a slight increase of 2.94% in the last 6 months, house prices have remained flat overall. Since 2007 the rest of London has seen steady growth with popular areas such as Kensington (5%), Islington (3.16%) and Camden (3.37%) showing an increase in property value.

Increased investment in new transport links, attractions and infrastructure surrounding the Olympic Park might lead you to think the property market would be performing better, but the fact still remains that the boroughs of Tower Hamlets, Hackney and Newham are still some of the poorest in the city despite being home to up and coming areas like Dalston and Shoreditch. The Olympic Games have certainly raised the profile of the East End and shown that it’s an area that will continue to grow beyond the current regeneration. However, it’s uncertain whether this will have an effect on the house prices in the coming years.

 

 

London property market | London rental

West, North and Central London areas are still the most popular and continue to attract interest from wealthy oversees buyers who view London as a safe investment. Continued demand both locally and internationally for property in these areas will see the prices continue to go up. Estate agency Marsh & Parsons reported an increase in property sales throughout London during the Games specifically, up 23% on last year’s figures and 35% on the same 16 day period in 2010. Their CEO Peter Rollings predicts the Olympics ‘will have a significant long-term impact on London’s appeal as a place to live for both domestic and international buyers.’

The rentals in London market however, has performed considerably better than the property market. In the run up to the Olympics, prices in the capital soared with the average monthly rent for a 2 bed property increasing by 4.8% from £1963 in Aug 2011 to £2059 in Aug 2012. Supplier of global property news Property Wire reported significant growth in east London boroughs such as Tower Hamlets up 18.5% and Greenwich up 24.1%. LondonPropertyWatch.co.uk, which publishes daily rental prices, shows a 1 bed property in Hackney E8 priced at an average of £307pw, only a fraction cheaper than somewhere more desirable like Chiswick which is an average of only £322 per week.

In short, there’s no contesting this rental boom has caused short-term home rentals to increase rapidly during the build up to the Games. Specialist home rental companies such as Vive Unique have helped pave the way for London homeowners to earn money from their homes by letting them out whilst they are away.

Vive Unique Founder and Director Claire Whisker commented, ‘more people are choosing unique home rentals to experience living like a local and it’s a trend that is set to continue. Ultimately, it has allowed homeowners to become entrepreneurs by making the most of their property while they’re away’.

 

 

Posred by My First Home Blog


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Comments on this entry are closed.

  • Nedelec

    I agree with the article but I think the effects will really measurable within a few months.

  • [email protected] Residential Architects

    Great article about the impact of the Olympics on the London property market. Have you factored in (or is it even a factor?) the effect of Crossrail to property prices and future property prices?


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