Company Announcements

12 September 2024

Grainger plc

("Grainger", the "Group", or the "Company")

Grainger welcomes the UK Government's Renters' Rights Bill

Grainger plc, the UK's largest listed residential landlord and leader in the build-to-rent sector, welcomes the UK Government's Renters' Rights Bill, presented yesterday in Parliament, and its ambition of raising standards in the rental market. As the country's leading responsible landlord, Grainger has been calling for and championing better rental standards for renters for many years.

While the Renters' Rights Bill aims to raise standards in the private rented sector, it does not include rent controls, a mechanism that has proven detrimental to renters when implemented elsewhere. The draft legislation will now go through the Parliamentary process of scrutiny and debate over the coming weeks and months.

The proposals within the Bill align to Grainger's well-established approach of providing high quality, energy efficient, mid-market homes to a wide range of household types, with a deep commitment to customer satisfaction and retention.

Grainger has long supported the abolition of 'No Fault' evictions (Section 21). Under the proposals, landlords will continue to be able to address cases of unpaid rent or anti-social behaviour.

The proposals do not include any form of rent controls and landlords will still be able to review rents annually and set them in line with the open market. In addition, to prevent rogue landlords from using egregious rent increases as a backdoor for eviction, renters will be able to challenge extreme rent increases which will be moderated by an expert Tribunal to ensure rents are in line with open market rents in the local area. This process (Section 13) is something Grainger is very familiar and comfortable with, as it is an established process within its Regulated Tenancy portfolio, which has historically exhibited rental growth in line with the market.

Other proposals within the draft legislation include:

·      Introducing a new Decent Homes Standard for the private rented sector which it is anticipated that Grainger properties are already compliant with

·      Introducing new rules around addressing damp and mould in properties in the private rented sector ('Awaab's law'), which Grainger anticipates it is already compliant with

·      A ban on rental bidding wars, a practice which Grainger does not condone nor participate in

·      Minimum energy efficiency standards for the private rented sector, following industry consultation, (EPC C or above by 2030), which Grainger is already well on its way toward compliance, with 94% of its PRS portfolio already EPC rated C or above.

·      A requirement on landlords to not unreasonably refuse pets, where Grainger already offers pet-friendly properties

·      Landlords will not be able to refuse tenants with children or those in receipt of state benefits. This aligns to Grainger's current position, where families are welcomed at sites across the portfolio and Grainger Trust, Grainger's inhouse affordable housing provider, provides homes to renters on lower incomes and benefits.

Grainger has been heavily involved in helping inform the draft legislation, having first made representations to the 'A Fairer Private Rented Sector' White Paper in 2022.

The Bill will now be debated and scrutinised over the coming weeks and months in both the House of Commons and House of Lords, and Grainger looks forward to continuing to use its expertise to help inform and shape the final legislation.

It is anticipated that the new legislation will come into effect by mid-2025.

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For further information, please contact:

Investor relations

Kurt Mueller, Director of Corporate Affairs, Grainger plc:              +44 (0) 20 7940 9500

Media

Julie Deighton, Director of Communications, Grainger plc:          +44 (0) 20 7940 9500

Ginny Pulbrook / Geoffrey Pelham-Lane, Camarco:                     +44 (0) 20 3757 4992 / 4985