A rise in property prices around the Olympic Park in East London is driving out poorer residents who were supposed to benefit from the 2012 Games, a report says.

A study of properties sold in the five Olympic boroughs found that those within a three-mile radius of the stadium rose in value by 5 per cent after London was awarded the Olympics in July 2005.

Across the five boroughs, some of the most socially deprived in the country, there was an increase in property prices of 2.3 per cent.

The injection of money into property in the area amounted to £1.4 billion, the research showed.

The data, gathered by Cass Business School from Land Registry records between 2005 and 2007, points to a gentrification effect that will exclude some of the poorest families.

For each mile a property was located from the 500-acre Olympic Park in Stratford, the price was reduced by 0.4 per cent. Beyond a nine-mile radius there was no impact on prices, suggesting that more affluent people were not prepared to live beyond that boundary.

Georgios Kavetsos, author of the research, said that the results brought into question the Government’s intention to improve living standards. The regeneration argument was a key factor in bidding for the Olympics, which are costing the taxpayer at least £9.3 billion.

“Rather than solving any problems with social deprivation, a regeneration strategy anchored to the Olympics will actually just transfer the problem somewhere else,” Dr Kavetsos said.

Since he concluded his study the recession has hit property prices with Newham, the main Olympic borough, seeing some of the biggest falls in London. In the quarter to June this year the average price there fell by 20.5 per cent, year-on-year, to £199,436.

Despite short-term fluctuations, though, housing experts still fear that locals will be priced out of the market in the longer term. Half of the 2,800 homes created when the £1 billion Olympic Village is sold off after the Games will be designated as affordable housing, but campaigners say this is not enough to cope with the demand.

The charity London Citizens is calling for community land trusts to be set up to ensure that subsidised homes are not sold off at the highest price soon after the Games. Dave Smith, housing officer, said: “At the moment there are no safeguards to lock in permanently affordable housing beyond the first generation of homeowner.”

Action East End, a lobby group, has described affordable housing plans as a smokescreen for property investors to cash in on the Olympics.

Penny Bernstock, housing consultant for London East Research Institute, said: “While people may be pushed out, it’s going to be a challenge to get middle-class people to want to live in such a deprived area.”