Steady progress at Mountview

The company owns a tenanted housing portfolio let on contracts signed before the rent reform laws of the late 1980s. That means that tenants cannot be ejected, while their rents are capped at sub-market rates. The attraction for investors is that once the tenant leaves or dies, the properties can be sold for a significant profit.

However, no regulated tenancies have been created since 1988, so there is a finite and shrinking market for such properties. During the year, Mountview invested £23.9m in new properties, but admitted that the buoyant state of the London market - where half of its portfolio is situated - had made for fierce competition within its niche sector.

Proceeds from the disposal of investment properties rose from £1.94m to £2.37m, and the investment portfolio received a £3.19m valuation uplift. More interestingly, however, Mountview has succumbed to shareholder concerns over the value of its much larger trading portfolio, which consists of the regulated tenancies. It has resolved to undertake a valuation, the results of which are expected to be released with interim results later this year.