The Olympics

The Olympics


News, information and stories about the Olympic Games.

Tuesday, 18 September 2007

House Prices

Estate agents are never shy to talk up house prices, and use every trick in the book to do so. Therefore it should come as no surprise to learn that they are using the 2012 London Olympics as a tool with which to underpin the already overpriced London housing market.

Ludlow Thompson, a firm of estate agents, has said that the 2012 Olympic Games in East London could boost property prices by £50K-£100K. The theory being that the regeneration of the area will allow first time buyers, who cannot afford central London, to enter the market.

It is not without precedent that the Olympics can, on occasions, boost house prices. Reports highlight that property prices rose by 63% in Athens in the 5 years prior to the 2004 games, while those in Sydney rose 50% in the same period before the 2000 games and those in Barcelona rose 131% in the 5 years before the 1992 games.

However, as we know, London is already in the midst of a house price boom that already appears to be unsustainable. It is highly unlikely that the Olympics will boost prices in the manner that the estate agents would have us believe.

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