Halifax expects property boost from Olympics

07 July 2005
Halifax says that property in London will receive a marked boost from the award of the Olympic Games.

The lender says that regeneration undertaken to ready the city for the world's biggest sporting event will have a hugely beneficial knock-on effect on the market.

In each of the last four Olympic Games, house prices have risen above the national average in the lead in to the event itself following the bid conclusion.

Typically the differentiation was a high as 18 per cent, leading Halifax's group economist Tim Crawford to identify a "bounce" on the back of the successful bid.

"This is great news for London. 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 said.

"Homeowners in Hackney and Stratford, could potentially reap similar benefits to other Olympic precincts over the longer term."

While improvements to the community help boost the price of houses, Halifax says that indirect improvements - such as the transport network and improvements to the cultural and leisure infrastructure - also leave their mark.

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