Olympics set to boost London house prices
03 January 2012
By Jenny Barrett
With the start of 2012 comes the countdown to the London Olympic games, and experts are forecasting a surge in house prices in the capital.
As the country looks forward to the Olympics in July and August, landlords looking to expand their portfolio in London are being encouraged to do so sooner rather than later.
House prices in the capital have been steadily rising for some time, and this is expected to increase as the Olympics approaches.
Graham Lock, Director of estate agent HouseNetwork, has predicted that property prices in London will increase by as much as five per cent in the first six months of this year.
Mr Lock has also predicted that, depending on the success and legacy of the tournament, there could be a further five per cent rise in London house prices in the second half of the year.
2012 looks set to be a good year for landlords in the capital, as rental prices are also expected to rise in the run-up to the Olympic Games.
London has bucked the trend for changes in house prices in the UK, as the only region that saw an annual increase.
Figures recently published in the Land Registry’s House Price Index show that there was a decrease in UK house prices in November 2011, compared to a year ago.
The latest figures show that the average price for a property in England and Wales is £160,780 – a drop of 1.9 per cent since November 2010.
Although house prices were up 0.3 per cent from October 2011, the majority of regions have seen an annual drop.
The biggest drops were seen in the North East and North West, with average prices falling by 5.4 per cent and 4.8 per cent respectively.
London was the only part of the country to see an average increase, with house prices rising by 1.4 per cent since 2010.
