PRS REIT reports rents remain strong

In their update for the quarter to 31 December 2023, PRS REIT plc, an investment trust that invests in high-quality, new build, family homes in the private rented sector, reported:

Rental demand for the Company’s homes remains very high, reflected in very strong rental growth and occupancy rates.  Occupancy at 31 December 2023 stood at 97% with 5,087 of the 5,264 completed homes occupied. A further 47 homes were reserved for applicants who    had passed referencing and paid rental deposits, giving an occupancy rate of 98%. Like-for-like rental growth for the 12 months to 31 December 2023 was 11% (2022: 6%).

Rent collection (defined as rent collected in the period relative to rent invoiced in the same period) for the quarter ended 31 December 2023 was extremely robust at 99%. Arrears were low at £0.6 million at 31 December 2023 (31 December 2022: £0.7 million).  This represents c.1% of annualised ERV on completed units.

Affordability, which is average rent as a proportion of gross household income, continues to be well within Homes England’s upper guidance limit of 35%. Reflecting the tenant base, where average household income has increased, the Company’s homes have an affordability ratio of c.22% of gross household income at 31 December 2023 (30 September 2023: 22%).





What is happening to rents?

Lettings agency Hamptons believe that rents have peaked.  Their latest data  reveals some interesting trends in the...

Twitter feed is not available at the moment.


Submit a Comment