This document is a Hanover Red residential investment quick report. The purpose of a quick report is to give an insight into the possibility of investing in residential property in the London borough of Hackney. The information you will read within this report is factual, and has been collated from statistical records from a number of different professional sources. For more information about investing in residential property in Hackney, or a full copy of Hanover Red’s Hackney Residential Investment Report, please contact the Hanover Red Investment Team.

Hackney’s Residential Growth Its been predicted by Hackney Borough Council for the population to rise by 14.28% Detached +31.6% Semi +97.5% Terraced +57.9% Flat +100%

Rental Demand Drivers In the third quarter of 2007, gross mortgage lending at loan to values of more than 90% equalled £14.6 billion, in the third quarter of 2011 it was just one twentieth of that figure. (FSA) The average deposit for a first time buyer in the UK currently stands at £26,000 up from £12,000 five years earlier. In London that average rises to some £64,000, with 71% of first time buyers requiring assistance from the bank of mum and dad to finance their purchase. (CML) At the end of January 2012 the average discounted interest rate for a 90% LTV mortgage stood at 5.3%, compared to 3.2% for a 75% LTV product – an increased cost of some 65%. (Bank of England) The profile of renters will change, with more affluent sections of society being forced or choosing to rent. Increased demand for private rented accommodation will include family housing. BedsPurchase Price Rent pcmGross Yield 1£250,000£1, % 2£330,000£1, % 3£480,000£3, % 4£760,000£3, % Average Rental Yield in Hackney 2014 Hackney’s rental price, yield & demand Hackney’s rental price, yield and demand

Capital Growth Growth Hackney is in the heart of London, one of the world’s most successful global cities, and on the fringe of one of the world’s most important financial districts, the City of London, and close to Canary Wharf as well as bordering Islington, Haringey, Tower Hamlets and Waltham Forest. The Borough of Hackney has attracted office development and the development of Shoreditch and Hoxton has caused land values to rise dramatically, thus expanding the range for prospective development. Hackney has benefitted from significant a transformation, the likes of which we are unlikely to experience again in this generation. The regeneration brought about by the 2012 Games shifted London’s centre of gravity to the east, and linking the tube to Hackney has expanded the local economy, bringing new jobs, housing and public facilities to the borough. There are 1,300 listed buildings in Hackney and 25 conservation areas as well as many urban spaces, protecting this borough’s rich heritage. The average house price in Hackney, is now around £502,000. Land Registry shows prices rose 17% over 12 months, achieving biggest year-on-year jump in all England and Wales. According to the Halifax, property prices in Hackney rose by 320 per cent between 1996 and 2006 – the biggest rise in London. London set for decade of buy-to-let growth. By Tanya Powley. The Financial Times. March Property in London and the south-east will continue to produce the highest total returns over the next ten years for buy-to-let investors, according to research released this week – with Greenwich, Hackney and Newham forecast to deliver returns of more than 9 per cent. Seven London boroughs will deliver net total annual returns of more than 8.5 per cent in the next decade. Capital Growth

Hackney Borough Council currently have four ‘Action Plans’ underway, those being in the areas of Dalston, Hackney Central, Hackney Wick and Manor House. The Council has said that the aims of each are to co-ordinate development and design to reflect future aims and desires of the residents. Dalston town centre is also being extensively redeveloped, with more retail and residential space being created. It has also seen the creation of Gillett Square, a truly flexible urban space that hosts a wide variety of events and festivals. Future Regeneration plan Gillett Square E8 Regeneration

London click here to return to commentary London Boroughs Price in 2012 Q1 % change over 10 years Annual % change last quarter Annual % change this quarter Barking and Dagenham£188,18654%5%3% Barnet£351,75374%8%7% Bexley£231,87364%2%5% Brent£349,41885%-1% Bromley£265,06160%0%1% Camden£573,581108%4%5% Croydon£237,24150%2%4% Ealing£349,85069%7%9% Enfield£284,07660%3%6% Greenwich£284,55077%14%11% Hackney£424,968113%11%12% Hammersmith and Fulham£528,40779%12%7% Haringey£371,99072%3%5% Harrow£300,88158%9%6% Havering£220,25058%1%2% Hillingdon£280,73256%3%4% Hounslow£322,06068%8%10% Islington£514,93899%15%11% Kingston upon Thames£345,99073%5% Lambeth£357,92177%5%6% Lewisham£288,42679%9% Merton£338,92871%5%9% Newham£234,00969%-3%-1% Redbridge£274,37967%6%4% Richmond upon Thames£407,99972%3%2% Southwark£370,20176%3%4% Sutton£252,39550%2%1% Tower Hamlets£419,74084%-2%2% Waltham Forest£255,52261%2%4% Wandsworth£453,52676%3%9% Westminster£666,55390%12%11% House Price Index for the Last 10 Years House price index for last ten years