In July Property Portal Watch posed the question, whether the London Olympic Games would attract a housing boom or a bust in the UK?
We cited a research by the Saunder School of Business at the University of British Columbia, which concluded that countries which host the Olympics, neither boom nor bust in their real estate prices, like it is widely perceived. Instead they gain construction jobs as they prepare for the Games.
“We do not find support for the argument of host city backers that the Olympics delivers positive economic benefits, nor of the arguments made by opponents that there is some post-Olympic bust,” said UBC professor Tsur Somerville, the study’s lead author.
Now that the Games have concluded in the UK, Rightmove – one of the Top 10 Property Portals in the UK – has found that house prices in England and Wales actually fell 2.4%, which is the largest ever recorded price drop in August. The company blames the Olympics for the drop in price throughout the country.
According to Rightmove, the South East experienced the largest drop in price, down 4.2%. Whereas the North East, was the only region not to show a decrease in price.
| Region | Monthly price change | Annual price change |
|---|---|---|
| East Anglia | -2.30% | 0.10% |
| East Midlands | -3.20% | 0.50% |
| Greater London | -1.20% | 8.80% |
| North | -1.30% | -0.80% |
| North West | 0% | 0.40% |
| South East | -4.20% | 1.90% |
| South West | -0.80% | 1.60% |
| Wales | -2.60% | -5.20% |
| West Midlands | -3.50% | -1.90% |
| Yorkshire & Humberside | -1.20% | -1.20% |
Source: Rightmove
According to Rightmove, the amount of time potential buyers spent searching for a property decreased by half in August. It seems that Britain was too ‘entranced’ by the Olympics, and put home shopping on the proverbial back burner until the Games came to a close.
Now sellers will be faced with the challenge of selling their property before Christmas time, and with the average time on the market at over three months, Rightmove advises homeowners to cover all the bases and get both interior and exterior in tip-top condition.
