“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.
“Our ongoing asset recycling programme supports our growth plans whilst preserving balance sheet strength. Over the year we’ve generated £274m of gross proceeds from disposals.
“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.
Strong rental performance continues
| Our market-leading operational platform continues to deliver value. | ||
| · Like-for-like rental growth continues strongly: | Sept24 | Sept23 |
| o Total like-for-like rental growth YTD: | 6.3% | 7.7% |
| o PRS like-for-like rental growth YTD: | 6.3% | 8.0% |
| § New Lets YTD: | 5.6% | 9.2% |
| § Renewals YTD: | 6.8% | 7.2% |
| o Regulated tenancy like-for-like rental growth YTD: | 6.6% | 5.9% |
| · Occupancy in our stabilised portfolio (BTR and PRS) remains high (spot, as at 30 Sept): | 97.4% | 98.6% |
Continued focus on our asset recycling programme
- Sales from our asset recycling programme of non-core assets (including Regulated Tenancies and older PRS assets) continue to perform strongly, generating significant revenue of £274m to redeploy into our ambitious growth plans and preserving balance sheet strength, ahead of last year which was £194m
Favourable political environment
The newly elected Labour Government have publicly opposed introducing rent controls in favour of stimulating the housing supply-side and raising standards via the Renters’ Rights Bill which Grainger already exceeds, and legislation which Grainger is proactively engaged on
0 Comments