UK Business
UK Residential
» Regulated
We currently own some 6,327 regulated residential properties valued at over £871m which remain central to our portfolio. These assets provide sustainable and predictable cash flows from rents and proceeds received when they are sold.
A regulated tenancy gives security of tenure - the right for the tenant to stay in the property for the rest of their lives. The rent is set independently and is less than the rate for similar market let properties. Due to changes in the law there have been no regulated tenancies created since 1989. This gives us predictable vacancies and therefore sales as our tenants get older.
Properties subject to regulated tenancies can be acquired at a discount to the ordinary property value (known as vacant possession value). On vacancy we sell the properties to realise both the discount (which we call reversion) and any house price inflation from the date we originally bought them. We therefore realise high margins on sale. While inevitably this portfolio will decline it will continue to be a major contributor to our business for some time. We aim to buy as many of these assets as returns and availability allow.
Grainger is protected against some of the risks associated with the residential market, such as short-term or localised falls in house prices, by the size and geographical spread of our portfolio and the fact that we buy and sell properties over long periods of time. The regulated portfolio also has low exposure to top-end volatility. Currently the average vacant possession value of our regulated stock is £189,000 per unit. Furthermore these properties are typically unmodernised and appeal to first-time buyers and those hoping to create value on renovation. This keeps them in demand.
To view Grainger's ex-regulated stock which is now for sale, please click here.
Portfolio Highlights
Grainger and Moorfield announce formation o...
23 August 2010
23 August 2010 Grainger plc (‘Grainger’/ the ‘Company’/ the ‘Group’) Grainger and Moorfield announce ...
Correction of Press Article
19 August 2010
The press article, “Grainger looks to German assets for new capital”, in the Estates Gazette (14 August ...
Interim Management Statement
11 August 2010
Interim Management Statement Grainger plc (“Grainger“, the “Company” or the “Group”), the UK’s largest ...
Home & Capital remain open for business
09 August 2010
HOME & CAPITAL REMAINS OPEN FOR BUSINESS FOLLOWING ACQUISITION OF SOVEREIGN REVERSIONS PLC BY GRAINGER...