London 2012 sets up house price boom

The Halifax has said that with the Olympics set to return to London in seven years’ time, house prices in London could go through the roof, as the demand will outstrip the supply in the run-up to the games.

The bank has based its predictions on the fact that all the host cities of the last four Olympic games saw house prices soar to unprecedented levels; Barcelona, Sydney and Athens saw a 50 percent rise in housing prices five years prior to the games.

According to Tim Crawford, the group economist at Halifax, the news that Olympics was returning to London was a great one, “Hosting an Olympic games encourages city regeneration and is usually accompanied by an improvement in facilities and transport links. These factors tend to be positive for house prices.” He added that homeowners in Hackney and Stratford stood to gain the most.

Dan McLeod of the estate agency, Atkinson McLeod expressed similar sentiments and said, “This is the best news for the property market in this area for years. Since the announcement, we have already had calls from investors asking about properties to develop in the east end.”

Russell Jervis, Spicerhaart managing director was of the view that the trend in growth of housing and economic prosperity in east London was set to be boosted by the news of a successful bid, “A new east London is fast emerging with much regeneration work currently underway and the already successful transformation of the Docklands. The win will create massive investment to the area, creating new jobs, homes and improved transport links,” he commented.

A sum of around £250 million has been earmarked for a new Olympic Stadium at Stratford in East London. Besides this £650 million will be spent on athletes’ village alone. Overall the London 2012 bid team expects to rake in a £100 million profit at the end of the games.