- Grainger mentioned it is persevering with to see ‘report ranges of rental progress’
Residential property group Grainger has loved report ranges of commerce amid ‘exceptionally excessive’ rental demand, which it says reveals no indicators of slowing.
The group instructed buyers on Wednesday it had seen ‘robust rental progress’ within the 4 months to 31 January, with Grainger lining up hundreds of latest buy-to-let builds.
The London-listed group mentioned it expects rental progress to proceed to be ‘increased than historic averages’ all through the rest of its monetary 12 months.
Grainger shares rose 2.38 per cent or 6.2p to 267.20p on Wednesday, having risen practically 4 per cent within the final 12 months.
Growth mode: Grainger personal and manages over 9,000 rental properties throughout the UK
The group noticed complete like-for-like rental progress of 8.3 per cent thus far in its buying and selling 12 months, up from 6.1 per cent on the identical time 12 months earlier.
Private rental sector (PRS) progress jumped 8.4 per cent, and controlled tenancy rental progress elevated by 7.6 per cent, the group mentioned.
Occupancy within the group’s PRS portfolio remained excessive at 97.2 per cent, however this was down barely from the 98.7 per cent degree seen on the identical time in January 2023.
Grainger mentioned it continued to see ‘robust pricing’, attaining common gross sales costs 2.6 per cent forward of valuations, including that it had benefitted from ‘good ranges of liquidity’ within the residential gross sales market.
The group, based mostly in Newcastle upon Tyne, at the moment boasts a £3.3billion operational portfolio of round 10,200 properties and a £1.6billion pipeline of an additional 5,634 build-to-rent properties.
Helen Gordon, chief govt of Grainger, mentioned: ‘Since our 12 months finish ends in November, we have now accomplished 307 properties at The Copper Works in Cardiff and proceed with the phased supply of properties at Weavers Yard in Newbury, with leasing according to our underwriting assumptions
‘In the following month we are going to see two new build-to-rent schemes launching in Birmingham and Bristol totalling 606 properties.’
Looking forward, Grainger mentioned the ‘robust, compelling fundamentals’ of the UK residential rental market proceed to underpin its funding case, with demand for renting, and its choices specifically, remaining ‘exceptionally excessive’.
It added: ‘We proceed to attain report ranges of rental progress, and will wage progress ameliorate later this 12 months, we count on rental progress to proceed be increased than historic averages, pushed by our market-leading operational platform.
‘With native and nationwide elections later this 12 months, we’re snug that political and regulatory threat for our enterprise is low and that our accountable strategy to delivering high-quality rental properties for the mid-market may be very a lot aligned to the primary political events’ priorities.’
Grainger personal and manages over 9,000 rental properties throughout the UK, working principally in cities.
The group will announce its half 12 months outcomes for the six months to 31 March on 16 May.