Newcastle-headquartered Grainger plc, the UK’s largest listed residential landlord and leader in the build-to-rent sector, said it added 1,113 new homes in the latest financial year and recorded 6.3% growth in like-for-like private rentals.
The company, which rents about 12,000 homes, said it sold £274m of assets in the year, compared with £194m the year before, as part of its asset recycling programme.
The company said it welcomed the newly elected Labour Government publicly opposing rent controls in favour of stimulating the housing supply-side and raising standards via the Renters’ Rights Bill which it said Grainger already exceeds.
It said its conversion into a real estate investment trust is on track for October 2025.
Helen Gordon, Chief Executive of Grainger, said: “Grainger has delivered double digit rental income growth this year in line with expectations, with strong like-for-like rental growth at 6.3% and whilst we expect rental growth to ameliorate somewhat, we still expect levels to be above the long term historic average for FY25. This growth is supported by our rapidly growing portfolio, with over 1,100 homes added to our portfolio this year and a pipeline which will double our rental income when compared with FY23.”
“Rental growth in FY25 will be underpinned by continuing high levels of wage growth throughout the UK and particularly in our target customer demographics and geographical locations. Affordability remains healthy and customer satisfaction scores remain high, demonstrating the sustainability of our rental income growth going forward.”
“The UK rental market continues to experience rapidly accelerating growth in demand, whilst supply remains constrained. Our portfolio is ‘fully let’ with occupancy at 97.4% at the end of September.”
“Explicit confirmation by the Labour Government that it opposes rent controls is welcome. The Government’s proposals to reform the planning system to stimulate housing supply and raise standards in the rental market is equally welcome and aligns to Grainger’s strategy and existing standards.”
“As we enter a new financial year, we are in a strong position to deliver further growth, benefiting from our market-leading, scalable operating platform.”