LGEN, GRI, SVS: Stocks under lens as average rent surges past £1,000

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LGEN, GRI, SVS: Stocks under lens as average rent surges past £1,000

 LGEN, GRI, SVS: Stocks under lens as average rent surges past £1,000
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Highlights

  • Tenants in the UK are now paying a record high of £1091 after a 1.2% increase last month.
  • London remains the most unaffordable region to rent with an almost 15% jump in prices to a new average of £1,804 in April from £1,580 last year.

With the soaring cost of living in the UK, tenants are now paying a record high of £1091 after a 1.2% increase in the past month, as every single region in the UK has seen a month-on-month increase in average prices. The figures show that the average rent in the UK is now at £920, up by 1.1% from March.

London remains the most unaffordable region to rent a house

2022 Kalkine Media®

According to the HomeLet Rental Index, London remains the most unaffordable region to rent a house with an almost 15% jump in prices to a new average of £1,804 in April, from £1,580 a year back. Scotland is the second most unaffordable region, where a tenant has to now pay 12% more from £689 last year to £774 in April 2022. The Northwest region saw a surge in rents by 11% to £878 in April.

With the rising inflationary pressure and cost of energy, it will become difficult for tenants to pay their rent every month and the demand for rental properties is continuing to outweigh the supply, which will further lead to an increase in average rent prices in the coming months.  

Let us look at 4 FTSE-listed rental stocks.

Legal & General Group Plc (LON: LGEN)

The multinational financial services and asset management company reported an 11% increase in its operating profit excluding mortality reserve release to £2.26 billion in FY2021, up from £2.04 billion in FY2020. Its pre-tax profit attributable to its equity holders rose by39% to £2.49 billion, from £1.79 billion in 2020.

With a market cap of £14,741.13 million, the FTSE 100 listed company’s share value devalued by -10.20% over the last one year as of 6 May 2022, while its year-to-date return stands at -17.55%. Legal & General Plc’s shares were trading at GBX 246.00, down by 0.37% at 8:10 AM (GMT), as of 6 May 2022.

Also Read: Darktrace, Kape Tech: Stocks to look at with rise in screensharing scams

Grainger Plc (LON: GRI)

The UK-based residential property business, Grainger Plc operates around 9,727 total rental homes and around 8,373 are under the development pipeline. With a market cap of £2,140.90 million, the FTSE 250 listed company’s share value devalued by -0.48% over the last one year as of 6 May 2022, while its year-to-date return stands at -8.63%. Grainger Plc’s shares were trading at GBX 288.40, down by 0.14% at 8:10 AM (GMT), as of 6 May 2022.

With the soaring cost of living, tenants in the UK are now paying a record high rent of £1091

2022 Kalkine Media®

Savills Plc (LON: SVS)

The UK-based real estate services company offers services such as property valuation, project management as well as property consultancy across 70 countries in the Americas, Asia, Europe, Africa, and the Middle East. With a market cap of £1,521.95 million, the FTSE 250 listed company’s share value devalued by -10.75% over the last one year as of 6 May 2022, while its year-to-date return stands at -25.28%. Savills Plc’s shares were trading at GBX 1,052.00, down by 0.28% at 8:10 AM (GMT), as of 6 May 2022.

Also Read: HSBA, NWG, LLOY: Stocks you may choose as BoE raises interest rates to 1%

Cairn Homes (LON: CRN)

The Ireland-based real estate construction business, Cairn Homes is engaged in developing and selling residential properties and involves the rental of properties. With a market cap of £662.67 million, the Main Market listed company’s share value devalued by -1.21% over the last one year as of 6 May 2022, while its year-to-date return stands at -1.68%. Cairn Homes Plc’s shares were trading at GBX 93.60, at 8:40 AM (GMT), as of 6 May 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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