Grainger suffers £112m loss as prices slump

This is down from a £78 million profit in 2007, and is mainly due to the falling value of its properties. Grainger says the value of its portfolio has fallen 7.6 per cent, although it notes this is less severe than the overall housing market, which has fallen by 12.4 per cent.

The landlord said it did not own many of the new build properties, such as city centre flats, that have been hit hardest by price reductions.

Its operating profit rose 19.1 per cent, from £89 million to £106 million.

Grainger is calling for government action to support the private rented sector. With the latest reports of build rates falling well below that needed to achieve government house building goals, it says the rental sector will be increasingly necessary.

Its results statement states: ‘We consider that, with suitable fiscal incentives and planning policies and practices to encourage build-to-let schemes, the private rented sector would not only help alleviate the supply problem but would also present Grainger with significant business opportunities.’

The latest house price figures, from building society Nationwide’s index, show prices have fallen 13.9 per cent for the year to the end of November, but the rate of decline has eased slightly from -1.3 per cent in October to -0.4 per cent.

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