Grainger Shows Positive Momentum in Rental Growth

Grainger, the property-investment company, has reported strong rental growth and ongoing expansion of its portfolio. The U.K. residential market has been a key driver of its investment success.

In the four months leading up to January, Grainger experienced an 8.4% increase in rental growth for its private rented sector (PRS) and build-to-let portfolio. The occupancy rate stood at an impressive 97.2%.

Looking ahead, Grainger's key performance indicators indicate a continued high level of rental demand in the coming months, which will help maintain a strong occupancy rate.

In terms of sales, the market has been robust, with Grainger consistently achieving prices that are 2.6% higher than valuations on average.

As the company's regulated tenancy portfolio decreases in size, it expects a reduction in sales volume. In the previous year, the portfolio decreased by approximately 14% and was valued at £760 million as of September 2023, while the PRS portfolio grew to £2.5 billion.

Grainger anticipates that rental growth will surpass historic averages if wage growth improves later this year, thanks to its market-leading operational platform.