Investment in east London ahead of the Olympics in 2012 is making the area increasingly attractive, according to a property agent.

Natalie Churchman, sales manager for Ludlowthompson, highlighted Walthamstow as an area that has benefited from the changes.

"We''ve seen house prices rise around Walthamstow and surrounding areas. We''ve had a rise all over London, but I think Walthamstow will continue to rise and perhaps it''s risen [more] than some more established areas in London because of the Olympics.

"There is an area now called Walthamstow village where you''ve got nice restaurants, gastro pubs opening up," she added.

The Greater London Authority has announced a range of measures designed to improve quality of life in the east of the capital, such as a ''green-grid'' programme to provide open spaces and recreational space for residents.

Transport for London has also announced a major extension of the East London line which, upon its completion in June 2010, will travel through 20 London boroughs from Dalston Junction to West Croydon.