The six Olympic boroughs for London 2012 have outperformed most other local authority areas in the host city in terms of house price growth, according to residential property crowdfunding platform Property Partner.
Major financial investment has helped boost property prices by an average 64% over the last four years in the ‘Olympic Boroughs’ of Hackney, Newham, Barking and Dagenham, Greenwich, Tower Hamlets and Waltham Forest. Meanwhile during the same period, the average property price rose by a healthy 52.8% across the capital’s 32 boroughs.
Property Partner analysed the UK House Price Index, using data since the 2012 Games in London.
From amongst the Olympic boroughs, Waltham Forest delivered a peak performance, winning gold for the strongest growth (76%) in average property price rises in London. The average cost of a house today in the East London borough is £418,146 – up from £236,796 in 2012.
Other notable risers include the boroughs of Hackney (66.9%) and Newham (62.6%), taking third and fourth position in the rankings respectively. Non-Olympic borough Lewisham squeezed into second place, with average house prices accelerating by 67.9% in the four years partly due to interest from homebuyers in Blackheath, Brockley and New Cross.
The following table shows how the average property prices fared in the top ten London ‘growth’ boroughs since 2012 – the host boroughs are highlighted below:
|Borough||Average house prices – July 2012 (£)*||Average house price – May 2016
|Barking & Dagenham||168,007||268,579||59.9|
Source: UK House Price Index
Former Mayor of London Boris Johnson** identified the host boroughs as areas that would benefit from investment around the Queen Elizabeth Olympic Park in East London.
Dan Gandesha, CEO of property crowdfunding platform Property Partner, comments:
London 2012 was the catalyst for a flood of investment into the capital, much of which was injected into regenerating some of the capital’s most disadvantaged boroughs.
The economic legacy of the Games – supporting new jobs and skills, encouraging trade, inward investment, tourism and improved transport links – has meant a corresponding rise in house prices in the six host boroughs. The economic, social and environmental gap between these boroughs and the rest of London is closing.