1. ©Hometrack 2016 1 INTRODUCTION TO HOUSING INTELLIGENCE How data and analytics can unlock strategic decision making Rob Owens, Hometrack - 30 September 2016

2. ©Hometrack 2016 2 Hometrack has been helping businesses across the property and finance sectors to manage residential risk and opportunity since 1999. Social housing providers, housebuilders, lenders and investors rely on our property valuation and market intelligence services to underpin their decisions. – 30 of the top 200 Housing Associations and over 50 Local Authorities rely on Hometrack’s market intelligence services to underpin their decisions and set strategy. – 17 out of the top 20 UK mortgage lenders use Hometrack’s Automated Valuation Model (AVM) – The 2 solutions we are looking at today are: Housing Intelligence; online access to the local-level information, including prices, market rents and cross-tenure affordability. LINKLINK Asset level capital and rental valuations along with other market metrics using Hometrack’s AVM. ABOUT HOMETRACK

3. ©Hometrack 2016 3 KEY QUESTIONS – Asset Management How do I evaluate the financial and non-financial value of my existing asset base? Understand impact of pay to stay & right to buy policies. – Development and regeneration Which areas should I look to target future development & regeneration? What range of products are needed to meet customer demand in our key operating areas? – Strategy & business development Where do I source robust market data to support development appraisals & AHP bid submissions? How do I track market conditions and manage risk moving forward? The drivers for change in the public sector have been accelerated by policy change

4. ©Hometrack 2016 4 – The 2 solutions we are looking at today: Housing Intelligence: online access to the local- level information, including prices, market rents and cross-tenure affordability. LINKLINK Hometrack asset level market analytics. MAKING BEST USE OF THE HOMETRACK

5. ©Hometrack 2016 5 BIG DATA AND YOUR PORTFOLIO Financial data – asset levelApplications Rental valuePay to stay; Rent to save; PRS Capital valueRight to buy; Earmark high value units; Tenure flex Gross yieldUnderstand return on investment; Rent setting LHA rateLHA for Under 35s & impact on nominations AffordabilityUnderstand income required for different tenures Applying analytics to make better decisions and improve performance

6. ©Hometrack 2016 6 BIG DATA AND YOUR PORTFOLIO Non-financial data – market levelApplications House price inflation metricsMonitor market trends in relation to development. Housing turnover and liquidity Understand the relationship between high rental values and scarcity of housing. New build concentrationTrack market reliance on new build. Socio-demographicsSegment markets to better understand demand. BCIS Replacement costRegeneration viability. Applying analytics to make better decisions and improve performance

7. ©Hometrack 2016 7 LOCALISED VIEW: GROSS YIELD – The map shows the gross yields of private housing stock at postcode sector level. The blue lines indicate the parent postcode district. – Markets are highly localised even at postcode district level. – Highlights need for mixed tenure development to meet housing demand.

8. ©Hometrack 2016 8 SUMMARY Financial and non-financial data can unlock a more strategic view of assets, delivering valuable insight. Data has wider applications across Development & Finance teams

9. ©Hometrack 2016 9 INTRODUCTION TO HOUSING INTELLIGENCE Rob Owens Business Analyst, Hometrack rowens@hometrack.com Enquires: enquiresUK@Hometrack.com www.hometrack.com @HometrackGlobal