Grainger says PRS like-for-like rental growth 3.4%

Listed residential landlord Grainger reported 3.4% like-for-like rental growth on its private rental sector (PRS) portfolio for the four months to the end of January.

Overall like-for-like rental growth was 3.7% in the year to date, with 3.4% like-for-like rental growth on Grainger's PRS homes and annualised rental growth of 4.3% on regulated tenancy rental reviews.

Occupancy within the PRS portfolio was 97.5% as tenant retention rates remained strong and the average length of stay increased to 32 months.

Income from our residential sales was underpinning valuations and delivering strong cashflows, the company said.

Residential sales performed in line with prior year and Grainger's expected 40:60 split over the first and second halves of the period.

Sales prices were robust, achieving 0.9% compared to latest valuations and sales transactions velocity was stable at 112 days.

Chief executive Helen Gordon said the growth demonstrated “the depth of customer demand, the quality of our offering, and the resilience of the sector”.

"When we launched our new strategy in early 2016 we set a target to invest £850m into new PRS assets by 2020. Our completed portfolio is now over 150% of this target with a further £808m in our secured investment pipeline two years ahead of plans."

"Lettings progress at Clippers Quay in Salford, the largest PRS scheme outside of London, has been very encouraging with lease-up and rent levels ahead of expectations. This endorses our view that well located, quality accommodation at mid-market rents will attract strong demand. We have 12 schemes currently on site, with a number of completions due this year, and we look forward to replicating this success across our pipeline.

"Strong sales performance at the end of last year reduced our vacant ex regulated properties available for sale. Pricing is steady and volumes have slowed slightly, we remain confident that we will achieve our full year expectations.

"With the business now underpinned by a resilient rental income stream and a robust balance sheet we are in a great position to progress our next phase of growth."