The UK’s biggest private corporate landlord has predicted that rental housing shortages will worsen in the coming years – while it takes the place of smaller landlords.
Grainger believes demand will grow by 20% between 2021 and 2031, further opening the door to its expanding build-to-rent (BTR) offer, with £1.3 billion earmarked for the 4,565 new homes in its pipeline.
While its half-yearly report shows net rental income growth of 15%, the company suggests it is likely that many smaller, private individual landlords will find a new regime under the Renters’ Rights Bill challenging, which will accelerate their exit from the market, further constraining supply.
Chief executive Helen Gordon (main image) says the Bill will professionalise the rental market and raise standards.
“Grainger, in the main, is already aligned to the new legislative landscape with our focus on high management standards, good quality customer service and high-quality, energy efficient properties,” adds Gordon.
“We are very well positioned to continue to perform strongly. That said, clarity on the Renters Rights Bill, a resolute commitment from government opposing rent controls, and support from government for growing the BTR sector means Grainger is in a strong position to continue to grow.”
It points to “attractive market dynamics”, as build-to-rent currently only represents 2.3% of the total rental market and enjoys significant political support.
Grainger believes the BTR market will continue to grow strongly, as consumer demand for renting accelerates. “Our platform which is designed for scale, our significant pipeline, our firepower from non-core assets and the strong levels of activity in the BTR investment market provides us with great confidence for delivering accelerated growth ahead,” says Gordon.
The company operates more than 11,500 rental properties in England and Wales, as well as £3 billion of residential assets in the UK and Germany. Savills data reveals that the number of BTR homes in the UK has jumped by 173% in the past five years as investment in the sector hit a record high during 2024.
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