Rents rise at later living investor ReSI

Later living and shared ownership investor Residential Secure Income saw rents rise by 2.7% on a like-for-like basis in the three months ended 30 June. The group, which owns a portfolio of 2,991 homes largely let to pensioners and part homeowners, valued at £315m, said it was reviewing options for disposal across its estate to return capital to shareholders. However, it warned that it expected opportunities for sales to take time, with the investment market remaining muted until interest rates were cut. Over the period, the group sold seven properties and put a further 16 under offer. The disposals are at a 19% premium to prevailing book value, it said. Ben Fry, managing director of housing at the firm’s investment manager Gresham House, said: “This quarter, ReSI has continued to deliver strong operational performance. We continue to execute our retirement related asset management initiatives to drive the future value of our retirement portfolio and review options for further disposals which support maximising shareholder value.” “The shortfall of more affordable homes remains acute, with an estimated £34bn of annual investment needed in the UK. With encouraging early steps on planning, we expect the new Labour government’s policies to be a tailwind for the affordable housing sector. The government has set a welcome and ambitious target of building 1.5m new homes over the next parliament, but this will not be possible through planning reform alone and will need to be met with the right funding.”  He added: “With public finance tight established registered providers and retirement platforms, like ReSI with a long-term investment approach to deliver for both residents and investors, are well suited to attract the necessary private funding to meet the country’s housing needs.”