The report still manages to disappoint with tired cliches in the form of "Olympic effect" quotations, apparently the growth in prices in Tower Hamlets owes nothing to the proximity of the area to City workers and the boom the banking industry has experienced over the past year..

However, the underlying report still makes for dismal reading in relation to the opportunities for first time buyers, Greater London prices have increased by 54% in five years. Even allowing for the average London wage, (suggested in this report as a debatable £44,750), a six times salary multiple in order to afford the average house price of £275,000 sitll defies belief...

House prices in Greater London rose by 1.2% in 2006 Quarter 3. (higher than the UK annual average of 8.0%), to reach an average of £269,188, (50% higher than the UK average of £179,425.) Annual house price inflation in Greater London eased from 10.9% in Quarter 2 to 8.5% in Quarter 3, indicating that the boost to prices in the capital from this year's record high City bonuses has diminished. The East End has also seen strong house price growth, benefiting from the "Olympics effect", with prices in Hackney rising by 19% over the past year to an average of £296,917. Tower Hamlets has recorded the biggest rise in house prices over the past year with a 21% increase.. In Hackney prices have risen by 19% as the 2012 Olympics encourages regeneration activity and attracts home buyers to the area. Stratford, the heart of the Olympic development, is becoming particularly popular and is highly sought after. As well as the Olympics-related regeneration activities, Stratford is to benefit from the planned channel tunnel station, due to open in 2007 and much retail development.

From: The Halifax.third quarter house price survey, firstrung.com, 15 10 06

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