1.15 One change which the project has already had to deal with is the impact of the London 2012 Olympics which was announced in July 2005 after the deal was signed. The partners have engaged positively with the Olympic authorities and the Peninsula will be a venue for several events, including basketball and gymnastics at The O2. The impact of the Olympics on the Peninsula is uncertain but over the next few years it is expected to contribute to a restriction in the supply of labour and materials for large construction projects, particularly in the East London area. EP and MDL need to manage these risks so the planned rate of development can be maintained in this environment. There is also a potential legacy issue after 2013 when there will be a large increase in the supply of housing, commercial and retail spaces after the conversion of the Olympic sites following London 2012. Any resulting risk to demand and thus the price of property and rental values in Greenwich needs careful management.
1.16 Interviewees and the expert panel thought that the scale of housing shortages in London should prevent this flooding of the market, particularly if MDL's current strategy - to take advantage of the period to 2013 to establish the Peninsula's presence within the housing market - is successfully executed. The location of the Peninsula, closer to Canary Wharf and central London, may also mean that MDL can target a different segment of the market than the Olympic sites at Stratford.