East London 'is good for long-term property investment'

Landlords looking to expand their portfolio with long-term investment options could consider buying property in east London, an industry expert has said.

With the 2012 Olympics fast approaching, Richard Donnell, director of research for Hometrack, said that there was a "reasonable" chance that the area would see above trend house price growth over the long-term.

The Olympic Delivery Authority expects the regeneration of east London that will accompany the new work to create around 12,000 new jobs. This could mean there is an increased market for private rental properties.

However, Mr Donnell warned that landlords should not buy in the area if they are looking to make a quick profit.

He explained: "If house prices rise in line with earnings over the next ten years, parts of east London have got a reasonable chance of outperforming the long-run average for London property prices.

"However, a lot of investors just want the best capital growth theycan get in the next three years so they probably wouldn't want to go buy in east London."

Figures from the Land Registry showed that London house prices rose by 1.5 per cent in June.