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 Greenwich. 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 Greenwich, or a full copy of Hanover Red’s Greenwich Residential Investment Report, please contact the Hanover Red Investment Team.

Greenwich’s Residential Growth

Greenwich’s rental price, yield and demand 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£260,000£1, % 2£375,000£1, % 3£510,000£2, % 4£880,000£3, %

Capital Growth Greenwich is out doing the target of 31,000 new homes built in the ten year period to Schemes under way include the award- winning Greenwich Millennium Village, the Royal Arsenal in Woolwich, and other development areas. Because of the volume of Greenwich’s regeneration scheme, it is becoming one of the better places to live in the country, spending heavily on hospitals, schools and leisure facilities will make the demand to live in Greenwich grow hugely, which Hanover Red believes will result in a dramatic increase to property prices in the next two years. 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.

Regeneration Royal Greenwich is currently undergoing a major transformation with one of the largest regeneration agendas in the UK. In recent years Greenwich has received a considerable amount of investment for major improvements to the Borough: more than 8,000 new homes built; more than 100 acres of parkland created; 3 new DLR stations and 1 tube; two new schools and two new piers built. Some 1,198 new homes were built last year and another 1,500 are under construction. The application for the Greenwich Peninsula project is the largest submitted in Europe and covers 1.4million square metres (346 acres) of development, the plan will provide: a 26,000 capacity arena sports, leisure and retail outlets in the Dome over 3,800 affordable dwellings over 10,000 new homes, including student and special-needs housing over 3,000 square metres of office space a new business park community uses including new schools and health provision 194,200 square metres (48 acres) of open space 300- and 500-bedroom hotels 25,000 jobs in commercial and retail enterprises.

House price index for last ten years London Boroughs Price in % change over 10 yearsAnnual % change last quarterAnnual % change this quarter 2012 Q1 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%