5th Feb 2015 07:46
LONDON (Alliance News) - Residential property group Grainger PLC on Thursday reported a rise in sales prices in the first four months of its financial year, albeit slower than a year earlier, and said it has taken a hit from adverse mark-to-market moves in derivatives.
Grainger said its average sale price achieve in the fourth months to the end of January was up 3.9% against September 2014 vacant possession value. The rise is slower than for the same period last year, when its reported a 7.1% rise in its average sales value for the four months to the end of January 2014.
The group said it completed GBP102.3 million in sales in the four months, again lower than the GBP104 million reported a year earlier.
The group said it saw strong levels of rental demand in its managed UK market-rented properties in the period, with year-to-date increases in rental value averaging 6.3% on a like-for-like basis on new lets and 2.6% on renewals.
But the group said it has taken a GBP14 million hit in the mark-to-market valuation of derivatives in the four months, compared to a GBP1 million gain a year earlier.
"We have seen positive trading conditions in the new financial year, with robust sales, good rent increases achieved and fee levels in line with expectations," said Grainger Chief Executive Andrew Cunningham.
"While home buyers have become more sensitive to pricing in recent months, the price points of our properties continue to generate strong interest and sell at levels above their vacant possession value in London and the South East, as well as the other UK regions where we operate. Rental demand for new lets and renewals remains strong," Cunningham added.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Grainger plc