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Resilient Grainger capitalises on rental demand

The private rented sector specialist has reported an uptick in new lettings since the start of the year and is pressing on with plans to scale-up its portfolio
Resilient Grainger capitalises on rental demand
  • Occupancy rates have declined due to lockdown restrictions
  • New lettings are rising since the start of the year
  • There are plans to more than double the PRS portfolio
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points

Shares trade at discount to forecast NAV

Dividend maintained

Underlying rents growing

Rental sector becoming more prevalent

Bear points

Exposure to housing market volatility

Occupancy rates have declined

Rents may be stabilising, but being a buy-to-let landlord is likely to cause more headaches than ever before. From the complete removal of mortgage interest rate relief to the mooted alignment of capital gains tax with income tax rates, it is little wonder that an increasing number of investors are losing confidence in the sector. At the end of last year, 30 per cent of landlords surveyed by the National Residential Landlords Association planned to sell some or all of their properties over the next 12 months, compared with 17 per cent that intended to buy. 

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