Why to buy in the Olympic regeneration zone

Since London won the 2012 Olympic and Paralympic Games bid, all eyes are on the centre of the action, the new Olympic village development in East London.

It might seem like a no-brainer to buy in an area about to undergo massive regeneration, but with the Games a few years down the line and much of the redevelopment still to happen, we look at what draws people to move here, and how the Olympic effect will make the area a wise property investment.

 
Property Prices on the Up

According to the Halifax, the price of property in areas close to the site of the 2012 games have risen by more than 15% since London's winning bid was announced, an early indicator that previously under-performing areas in the east may soon match prices in west London.

Residents in the area are already reaping the benefits. Newham resident Nikki Jones says: 

"I purchased my property in 1991, knowing full well E16 was a bit run down - typically East End area. At the time it was all I could afford... but the gamble has paid off. It's been the wisest and most profitable investment I've made, and now with Newham becoming the ‘Olympic Borough' the future is bright."

 
The Olympic Effect

The biggest leap in prices is in E3 (Bow), where average house prices have risen by £60,000 since London won the bid in July 2005. Property in E8 (Hackney) and E11 (Leytonstone) has also grown in value by over £40k.

If previous Olympic Games are anything to go by, it's a trend that looks set to continue. The so-called Olympic effect has been felt in host cities Barcelona, Atlanta, Sydney and Athens. There, they experienced an average house price increase of 66% over five years against an average national rise of 47%.  

Despite this, there are still bargains to be had in the area, with average prices in E6 (East Ham), E10 (Leyton) and E13 (Plaistow) still shy of £200,000 in the final quarter of 2006 - but only just. For more local property trends, take a look at individual house sale prices.

 
The Regeneration Project

Much of the redevelopment centres around the Lower Lea Valley, situated just four miles from Tower Bridge, which will be the site of the Olympic Park itself. Here you can expect to see:

• Riverside housing
• Shops
• Restaurants and cafes
• Olympics sports facilities adapted for community use once the Games are over
• Restoration of valley river system into wetland habitat
• Re-introduction of native wildlife and plant species

The whole of the East End will benefit from transport enhancements on overground and underground services, new housing and jobs.

Local Life

Because every area differs from street to street, you should always find out what's going on at a local level to find your perfect neighbourhood. Check council tax rates, crime levels, what the local schools are like and what the neighbourhood type is.

Word on the Street

East End boozers, cheeky cockneys and jellied eels aside, what is east London really like? Certainly never perceived as upmarket,  regeneration is long overdue in some parts. Channel 4 voted Hackney number one in their Top 10 Worst Places To Live in the UK last year, with Tower Hamlets third and Newham fourth. You need to ask the locals to get the real story though. Hackney fan Martin Whitby says:

"I have lived in Dalston for many years. While it was pretty rough around the edges, it has improved dramatically. The neighbourhood is definitely cleaner, safer and more interesting, and the rich cultural mix enriches everyone."

See what local people say on our messageboards or read comments from residents.

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