Grainger raves about the “exceptionally high” rent demand.

  • Grainger said he continues to see “record levels of rental growth.”

Residential property group Grainger has enjoyed record levels of trade amid “exceptionally high” rental demand, which it says shows no signs of slowing down.

The group told investors on Wednesday it had seen “strong rental growth” in the four months to January 31, as Grainger readied thousands of new builds for buy-to-let.

The London-listed group said it expects rent growth to continue “above historical averages” throughout the remainder of its financial year.

Grainger shares It rose 2.38 percent, or 6.2 points, to 267.20 points on Wednesday, after rising nearly 4 percent in the past year.

Growth Status: Grainger owns and manages more than 9,000 rental homes across the UK

Growth Status: Grainger owns and manages more than 9,000 rental homes across the UK

The group has seen overall like-for-like rental growth of 8.3 per cent so far in its trading year, up from 6.1 per cent at the same time 12 months ago.

The group said that the growth of the private rental sector jumped by 8.4 percent, and the growth of regulated rentals increased by 7.6 percent.

The occupancy rate in the group’s PRSP portfolio remained high at 97.2 per cent, but this was down slightly from the 98.7 per cent level seen at the same time in January 2023.

Grainger said it continued to see “strong pricing”, with average sales prices up 2.6 per cent ahead of valuations, adding that it benefited from “good levels of liquidity” in the residential sales market.

The group, based in Newcastle upon Tyne, currently has a £3.3bn operating portfolio of around 10,200 homes and a £1.6bn pipeline of a further 5,634 build-to-rent homes.

Helen Gordon, chief executive of Grainger, said: “Since the year-end results in November, we have completed 307 homes at The Copper Works in Cardiff and are continuing the phased delivery of homes at Weavers Yard in Newbury, with leasing in line with our plans. Underwriting assumptions

“Next month we will see the launch of two new build to rent schemes in Birmingham and Bristol with a total of 606 homes.”

Looking to the future, Grainger said the “strong and compelling fundamentals” of the UK residential rental market continue to support its investment case, with rental demand, and rental supply in particular, remaining “exceptionally high”.

“We continue to achieve record levels of rental growth, and if wage growth improves later this year, we expect rental growth to continue to be above historical averages, driven by our market-leading operating platform,” she added.

“With local and national elections later this year, we are comfortable that the political and regulatory risks to our business are low and that our responsible approach to delivering high-quality rental homes to the middle market is broadly aligned with the major political parties’ priorities.”

Grainger owns and operates more than 9,000 rental homes across the UK, primarily operating in cities.

The group will announce its semi-annual results for the six months ending March 31 on May 16.

(tags for translation) Daily Mail

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