Grainger reports 'strong performance'
Britain’s largest listed private landlord has announced higher rental increases, citing high demand amid a “strong trading performance”.
Grainger has in a trading update today announced its rents in the four months to 31 January increased by an average of 7.8% on new lets and 3.6% on renewed lets. This is up on the previous year’s figures of 6.3% and 2.6% respectively.
The landlord, which plans to invest £850m in private rented sector (PRS) development by 2020, said it has seen “continued high demand for our wholly-owned and managed UK PRS homes and positive growth in regulated tenancy rents”. It said it has seen a “strong trading performance” in the four months to 31 January.
Grainger said it has committed £124m of direct PRS investment between September and the end of January, including £25m for 272 tenanted PRS units and a £57m investment by GRIP, a property fund owned by Grainger and pension fund manager APG.
The statement follows an announcement earlier this month of Grainger’s £99m acquisition of a Build to Rent scheme in Salford Quays.
The acquisition comes amid increased Build to Rent activity in the sector. Inside Housing reported last month that a joint venture between Legal & General Capital and Dutch fund manager PGGM is planning to invest £600m in building 3,000 purpose-built private rental homes.