Grainger has hailed an ‘outstanding year’ as the housebuilder continued to benefit from soaring demand for rental accommodation.
Britain’s biggest listed residential landlord constructed around 1,200 new build-to-rent homes in 2023 and plans to deliver an additional 439 by the end of the calendar year.
The Newcastle-based company’s operational portfolio now totals over 10,200 private rental homes, while a further 5,634 units with an investment value of £1.6billion are in its pipeline.
Building more: Grainger said it had constructed around 1,200 new build-to-rent homes in 2023 and plans to deliver an additional 439 by the end of the calendar year
In its private rented sector portfolio, occupancy rates reached a record 98.6 per cent, while like-for-like rental growth jumped by 8 per cent.
For the year ending September, its net rental income increased by 12 per cent to £96.5million, but the figure exceeded £100million on an annual passing basis.
Grainger is capitalising on the booming demand for rental accommodation amid weak mortgage availability and affordability, and a scarce supply of homes.
More landlords are also selling up following changes to tax rules, including the 3 per cent stamp duty surcharge on second home purchases, and uncertainty over energy efficiency regulations and the Renters (Reform) Bill going through Parliament.
Concurrently, restrictive planning laws and local opposition to new developments are constraining the supply of new housing, further boosting rental prices.
As a result, average UK rents surged to record highs of £2,627 per month in London and £1,278 outside the capital between July and September, according to recent figures from Rightmove.
‘It is with great pleasure that I can report an outstanding year of record delivery and a strong performance for Grainger,’ said Helen Gordon, the firm’s chief executive.
‘Despite the macro-economic turbulence which marked the beginning of our financial year, the Grainger business has performed exceptionally well.
‘This performance has been delivered by our market-leading operating platform, robust balance sheet and disciplined approach to capital allocation.’
Grainger declared an 11 per cent hike in its final dividend to 6.65 per share.
The company further announced it had agreed a partnership with Blocwork, the joint venture comprising Network Rail and Bloc Group.
They plan to construct 2,000 new rental properties across six major UK cities, having just finished developing a 348-home build-to-rent scheme in Nottingham called The Barnum.
Gordon said the tie-up ‘supports Grainger’s ambitious growth plans and provides access to superbly located and well-connected sites.’
Founded in 1912, Grainger develops American-style housing complexes containing a wide variety of services, ranging from fitness centres to concierges, gardens and co-working spaces.
Grainger shares were 2.3 per cent higher at 259.6p on Wednesday morning.
