Landlords looking to jump on the Olympics bandwagon must act fast as property prices in east London are set to increase faster than anywhere else in the capital in the run up to the 2012 games.
Research for Lloyds TSB has found property prices in 14 postal districts of east London have increased by an average of 26 percent since it was announced in 2005 that London would hold the 2012 Olympics.
The largest average increase of 69 percent was seen in Homerton, followed by Shoreditch with a 53 percent price increase, both of which are in the borough of Hackney where the average house price is now £262,953.
However not all areas of east London have benefited from the same growth. Stratford, the home of the new Olympic stadium, only saw a three percent increase.
Plaistow was found to be the least expensive postal district with an average house price of £196,426 followed by West Ham at £203,500.
The increased investment into the area has seen increased interest from both property buyers and investors.
The area of east London is set to benefit from upgraded facilities such as a 500-acre Olympic Park, several sporting complexes and updated transport links.
Suren Thiru, housing economist at Lloyds TSB, said: “Part of this rise is likely to have been due to an increased interest in property in these locations from both buyers and investors as a result of the associated regeneration taking place.
“Looking forward, property prices across east London are likely to receive a boost from the legacy of improved infrastructure and transport links left by the London 2012.”
This could be good news for buy to let investors in the area who could benefit from increased rents.
Research from Knight Frank suggests that the number of people looking to rent a property in London has increased by 17 percent over the last two years.
• Residential Landlord Association members can now obtain six different kinds of tenancy agreement to meet a variety of requirements.
These include a new version of the RLA Assured Shorthold Tenancy Agreement, a new Room Only AST designed specifically for shared properties, a lodger’s agreement, a company let, an owner-occupier agreement and a non-assured tenancy agreement.
All RLA tenancy agreements can be completed on-screen and copies can be saved to retain any entered information.
A number of the new agreements, including the new 2010 version of the RLA AST, bare the Plain English Campaign's Crystal Mark, which recognises the body’s commitment to providing easy documentation for landlords and tenants to understand.
