Residential property giant Grainger has reported double digit rental income growth due to high demand in the rental market and continued price increases.
Rental growth for the year was 6.3 per cent, down from 7.7 per cent in 2023. The property giant noted that rents had been supported by a tight housing market, with “rapidly accelerating growth in demand, whilst supply remains constrained”, it said.
The group, which is the UK’s largest residential landlord, added that it expects rents to increase further in the upcoming financial year, supported by “continuing high levels of wage growth throughout the UK… particularly in our target customer demographics and geographical locations”.
The UK’s largest listed landlord added 1,113 new homes to its portfolio during the year, as well as completing four new build-to-rent schemes totalling 978 homes.
Grainger, which now operates around 12,000 homes, said that occupancy rates were just below historic highs, down by 1.2 per cent year on year to reach 97.4 per cent.
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 per cent and whilst we expect rental growth to ameliorate somewhat, we still expect levels to be above the long term historic average for [the financial year 2025].
“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 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.
“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.”
The upcoming financial year will be the last before Grainger becomes a real estate investment trust (REIT).