One in 10 PRS tenants struggling with rent
2 years ago | 5 comments
Giant residential landlord sees rents and profits rise
12:06 AM, 8th October 2024, 2 years ago
6
The UK’s largest listed provider of private rental homes has reported increasing rents and a growing portfolio has delivered stronger profits.
Grainger, a FTSE 250 company, says it has added 1,113 new homes to its 12,000-strong portfolio during the year ended 30 September.
They include four completed build-to-rent schemes and the acquisition of an asset in Manchester.
This expansion helped deliver a 6.3% like-for-like rent growth and an occupancy rate of 97.4%.
New Towns Taskforce
The firm’s chief executive, Helen Gordon, has been appointed to the government’s New Towns Taskforce.
Grainger says it is optimistic about future earnings growth.
Ms Gordon 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 the 2025 financial year.
“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 2023.
“Rental growth in 2025 will be underpinned by continuing high levels of wage growth throughout the UK and particularly in our target customer demographics and geographical locations.”
Customer satisfaction score
Ms Gordon said affordability remained healthy, adding that customer satisfaction scores remained high.
She adds: “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.”
Ms Gordon continued: “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.”
Tags:
build to rent, Grainger, Helen Gordon, housing supply, labour government, private rental homes, REIT, rent controls, rental growth, UK Housing Market
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Previous Article
One in 10 PRS tenants struggling with rentNext Article
Why London's Housing Market is Worse Than You ThinkRelated Articles
Government urged to prevent rent arrears – not let them grow
2 years ago | 7 comments
Industry boss warns Labour’s anti-landlord stance will harm tenants
2 years ago | 7 comments
Member Since June 2013 - Comments: 3248 - Articles: 81
10:05 AM, 8th October 2024, About 2 years ago
Hope Ed Miliband or whoever is Housing Imbecile MP is reading this
with strong like-for-like rental growth at 6.3%
So these Build to rent all about growth, good for the company, bad for tenants. For whom us Landlords have personal relationships with & morals & conscience. And try to look after them on the rents. Consequently we don’t have 6.3% rental growth year on year. We of course can if reletting to new tenant we don’t know.
Time to take shares in the BTR companies I think with pure business motive on rental growth. No more sympathy.
Member Since July 2017 - Comments: 462
10:06 AM, 8th October 2024, About 2 years ago
Looks interesting. FTSE company current yield 2.81%. Interim dividend increase by 11.4%. If the final dividend is increased by the same amount the yield will be 3.13%
Member Since January 2016 - Comments: 298 - Articles: 1
11:32 AM, 8th October 2024, About 2 years ago
Seems to me that I should cash in my chips and buy Grainger shares?
Member Since July 2017 - Comments: 462
12:10 PM, 8th October 2024, About 2 years ago
They are converting to a REIT in about 12 months time. REIT = Real Estate Investment Trust which has many tax advantages. It goes without saying that you buy any shares via an ISA so you don’t pay any tax,
The main benefit of REITs lies with their favourable tax position. Anyone holding shares in a REIT will effectively avoid the ‘double taxation’ scenario which an investor in non-REIT property companies will face. The tax rules surrounding REIT companies allow the company to avoid paying corporation tax, providing that 90% of income from property rental is distributed to shareholders. As a result, investors pay tax on the Property Income Distribution (PID) which they receive, without it first having been subject to corporation tax. Importantly, REIT shares can be held within a SIPP or ISA where the PID will be paid gross and higher rate taxpayers and additional rate taxpayers will not be liable to further tax. REITs must also have low-controlled gearing. REITs can produce regular high-yield returns, since 90% of rental receipts must be distributed to shareholders within a REIT regime, income seekers may well see this as an attractive aspect to the asset class.
Member Since September 2018 - Comments: 111
5:03 PM, 8th October 2024, About 2 years ago
Imagine if a small private sector landlord talked about their tenants in this way! Personally I think this is the way the private sector is heading and the smaller more emotional landlords will be left behind. I’m guessing this was the ultimate goal of George Osborne back in 2015
Member Since July 2017 - Comments: 462
5:51 PM, 8th October 2024, About 2 years ago
Reply to the comment left by Michael Johnson – Amzac Estates at 08/10/2024 – 17:03
I agree the private sector is heading this way as ordinary private landlords get taxed or legislated out of existence. However I feel sure Grainger won’t take tenants on benefits and in the near future can’t see councils or social housing groups being able to afford to buy or build suitable properties, without government help.