East End House Prices up Over GBP800 a Month Since Olympic Win

    MANCHESTER, ENGLAND, March 18, 2012 /24-7PressRelease/ -- With only five months to go before the Opening Ceremony of the London 2012 Olympic Games, new research from Lloyds TSB reveals that the value of homes close to the main site of the London 2012 Olympic and Paralympic Games have increased by over GBP60,000 on average since London's winning bid was announced. The average house price across the 14 postal districtsi closest to the main site for the London 2012 Olympic and Paralympic Games stood at GBP268,884 in November 2011ii, an increase of 30% (GBP62,739) from the average of GBP206,145 when London was awarded the Games in July 2005. This is equivalent to a monthly rise of GBP815. House prices across England and Wales have risen by 25% over the same period which on average is a monthly increase of GBP611.

Dalston has recorded the fastest growth in house prices since July 2005 Since July 2005, house prices in eight of the 14 postal districts close to Olympic Park1 have risen by at least 20%. Dalston and Homerton - both in the borough of Hackney - have delivered the fastest growth in house prices, both recording increases of 55% between July 2005 and November 2011. Shoreditch with a 47% (GBP102,934) increase has seen the next highest rise. Stratford, the focal point for Olympic construction activity, has experienced a 13% (GBP26,646) rise in its average price to GBP227,893.

House prices in the areas close to Olympic Park up 0.5% over the past year House prices in the postal districts close to the Olympic Park have risen by an average of 0.5% over the past year, greater than the 0.3% fall across England and Wales. However, just two out of the fourteen Olympic postal districts - Dalston (10.3%) and Clapton (7.1%) - have outperformed the average increase across London (5.4%) during the past 12 months. Dalston recorded the largest price rise (10.3%), while Bethnal Green recorded the biggest fall (-5.2%).

The East End remains among one of the most affordable areas in London. Despite these gains, the typical house price among the 14 postal districts close to the Olympic Park (GBP268,884) is 22% below the London average (GBP342,551), highlighting the area's still relatively affordable prices. The most affordable postal district is Plaistow with an average house price of GBP188,760, which is 45% (GBP153,791) below the London average. In contrast, Dalston (GBP359,436) is the most expensive postal district.

Suren Thiru, housing economist, Lloyds TSB, commented:
"Overall house price performance among the postal districts that are in close vicinity to the Olympic park has been generally positive since London's successful bid in 2005. Some areas close to the main site for the 2012 London Games have experienced a sharp rise in property prices, reflecting increased buyer interest as well as the regeneration taking place there. However, some areas have yet to see as marked an improvement. Over the long term, house prices in the East End of London are likely to be supported by the Olympic legacy of improved infrastructure and transport links."

Table 1 - % change in house prices in postal districts close to the Olympic Park have since London was awarded the Olympic Games.

Postal District Jul-05 Nov-11 %Change GBPChange
Dalston GBP232,308 GBP359,436 55% GBP127,128
Homerton GBP214,952 GBP332,102 55% GBP117,151
Shoreditch GBP220,077 GBP323,011 47% GBP102,934
Clapton GBP217,900 GBP314,111 44% GBP96,211
Bethnal Green GBP228,425 GBP303,383 33% GBP74,959
Leytonstone GBP234,232 GBP304,887 30% GBP70,655
Bow GBP224,285 GBP285,163 27% GBP60,878
Leyton GBP181,039 GBP217,947 20% GBP36,908
Walthamstow GBP191,139 GBP227,036 19% GBP35,897
Stratford GBP201,247 GBP227,893 13% GBP26,646
Manor Park GBP202,244 GBP226,451 12% GBP24,207
Forest Gate GBP198,408 GBP221,412 12% GBP23,005
East Ham GBP186,808 GBP200,625 7% GBP13,817
Plaistow GBP179,005 GBP188,760 5% GBP9,756

East London
Average* GBP206,145 GBP268,884 30% GBP62,739
England and Wales average GBP185,581 GBP232,592 25% GBP47,011

Source: Land Registry, Lloyds TSB
*Weighted average of the 14 postal districts close to the Olympic Park

Table 2 - % change in house prices in postal districts close to the Olympic Park, Nov 2010-
Nov 2011

Postal District Nov-10 Nov-11 %Change 1 Year GBP Change
Dalston GBP325,981 GBP359,436 10.3% GBP33,455
Clapton GBP293,409 GBP314,111 7.1% GBP20,702
Stratford GBP218,635 GBP227,893 4.2% GBP9,258
Leyton GBP210,084 GBP217,947 3.7% GBP7,864
Leytonstone GBP298,342 GBP304,887 2.2% GBP6,545
Walthamstow GBP222,807 GBP227,036 1.9% GBP4,229
Bow GBP281,824 GBP285,163 1.2% GBP3,339
East Ham GBP200,860 GBP200,625 -0.1% -GBP235
Manor Park GBP228,308 GBP226,451 -0.8% -GBP1,857
Shoreditch GBP327,339 GBP323,011 -1.3% -GBP4,329
Homerton GBP340,609 GBP332,102 -2.5% -GBP8,507
Plaistow GBP194,369 GBP188,760 -2.9% -GBP5,609
Forest Gate GBP229,958 GBP221,412 -3.7% -GBP8,545
Bethnal Green GBP320,028 GBP303,383 -5.2% -GBP16,645
East London
Average* GBP267,438 GBP268,884 0.5% GBP1,446
England and Wales average GBP233,254 GBP232,592 -0.3% -GBP662

Source: Land Registry, Lloyds TSB
*Weighted average of the 14 postal districts close to the Olympic Park

Editors' Notes

Lloyds TSB and London 2012
Lloyds TSB is the exclusive Banking & Insurance Partner of the London 2012 Olympic and Paralympic Games and partner of the London 2012 ticketing programme and the Olympic Torch Relay. The Bank is committed to inspire and support young people, businesses and communities across Britain in the lead up to London 2012.

For more information on how Lloyds TSB is helping take the London 2012 Olympic and Paralympic Games to all corners of Britain, visit: www.lloydstsb.com/london2012 or follow us on facebook:
www.facebook.com/lloydstsblondon2012

"This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance." Lloyds TSB Bank plc all rights reserved 2012

i. postal districts close to the Olympic Park used to define the following fourteen postal districts that are located close to the site of the 2012 Olympics: Bethnal Green, Bow, Clapton, East Ham, Forest Gate, Dalston, Homerton, Leyton, Leytonstone, Manor Park, Plaistow, Shoreditch, Stratford and Walthamstow.

ii. London house price performance has been measured over the period July 2005 to November 2011. The London house prices quoted in this release are taken from the Land Registry database and refer to 12 month averages. Prices are arithmetic average prices of houses - otherwise known as crude averages - and are based on Land Registry completions. These prices are not standardised and therefore can be affected by changes in the sample from year to year - therefore, care should be taken when comparing prices.

On July 6th 2005 the International Olympic Committee announced London as the winning city to host the 2012 Olympic
Games. http://www.london2012.com/index.php


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