London property owners can expect to make an average of £4500 renting out their home during the 2012 Olympics, it is claimed.
With the Games due to start in exactly two years time, figures from HomeAway Holiday-Rentals says there is an opportunity to make an average of £2,000 per week during the 16 day long sporting event.
‘The switch from hotels to holiday rental has been steadily increasing, with particularly high spikes in demand around major global sporting events. For the 2010 World Cup in South Africa, many visitors sought out holiday rental properties as an alternative to a hotel, which meant the average weekly income generated per property soared by almost 150%,’ explained Tim Boughton, the company’s UK General Manager.
‘As London plays host to visitors from around the world, we anticipate demand for London properties to rocket, particularly those properties in close proximity to the key Olympics sites, with good transport links to London’s top attractions,’ he said.
Property owners near the Olympic park have also seen the values of their homes increase well above average, with some average prices in East London rising 26% in the last two years.
Some locations close to the main site for the London 2012 Olympic and Paralympic Games have seen even higher price rises with Homerton and Shoreditch, both in the borough of Hackney, seeing average property prices rise by 69% and 53% respectively, significantly above the Greater London average of 36%.
There has, however, been a mixed performance in property prices with Stratford, the home of the Olympic Stadium, seeing only a 3% increase in average prices, slower than any of the other postal districts, the research from Lloyds TSB shows.
‘Some areas close to the Olympic Park have experienced a sharp rise in property prices since London’s successful bid to host the 2012 Olympic and Paralympic Games. 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,’ said Suren Thiru, housing economist at Lloyds TSB.
‘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 Olympics,’ added Thiru.
East London will see a massive upgrade in facilities from hosting the Olympic and Paralympic Games. The area will benefit from a 500 acre Olympic Park reaching from the Hackney Marshes to the Thames, which will include an Olympic stadium, aquatic centre, along with several other sporting complexes and a 17,800 person Olympic village.
Significant transport improvements are also taking place. Investment is trebling the capacity of Stratford Regional Station, the main transport hub for London 2012 which is expected accommodate 120,000 passengers and enable 200 trains every hour during the Games. A range of other transport improvements serving the Park are already underway, including an extension to the Docklands Light Railway (DLR) and increasing capacity on the Jubilee Line.