There was a further sign of the impact of low supply on the UK’s rental market today as build-to-rent landlord Grainger said its occupancy rate had hit a new high, just short of 99%.
The landlord — whose CEO Helen Gordon last month told the Standard the business would ‘benefit’ from fast-rising wages as the low levels of supply in the market force rents up as pay rises — reported that its properties were now 98.7% occupied, up from what were already record levels earlier in the year.
It also reported a further 7.1% rental growth for the year to date.
Gordon said today: “Momentum in the business is continuing as we move into the peak summer lettings season and the launch of 7 new schemes in the remainder of 2023.
“Occupancy remains at record levels at over 98% and like-for-like rental growth across our national portfolio is continuing to build whilst remaining mindful of overall customer affordability levels.”
Interest rates for buy-to-let mortgages have skyrocketed in recent weeks, which could potentially constrict rental supply further. According to statistics from Moneyfacts, a two-year buy-to-let fixed-rate mortgage now carries an interest rate of 6.51%, having crossed the 6.5% barrier today, while five-year buy-to-let rates are 6.41%.
The Labour party has pushed for efforts to boost housing supply after years of low levels of building. Party leader Keir Starmer has said discussion was needed over allowing building on the green belt if it meets local needs.
Grainger rents out 10,000 homes across the UK.
Grainger has partnered with Transport for London to build 1,240 new homes around tube stations. Earlier this year their joint venture, Connected Living London, acquired the land for four of these five schemes from TfL.
