We're not over the worst – Grainger

May 21 2009 by Andrew Mernin, The Journal

Earlier this week a new industry report showed that UK homeowners should brace themselves for a potential 20% fall in house prices.

This was despite recent surveys from mortgage lenders which suggest activity in the UK’s housing market may have picked up on the back of interest rates being slashed to 0.5% by the Bank of England.

According to property website Rightmove’s latest index, house prices rose for the forth straight month in a row at the beginning of May.

Meanwhile, Grainger said it is currently considering options for its European operation and may look to sell off a significant proportion of its German assets, which are worth £792m. Chairman Robin Broadhurst said the company’s strategy would be based on prudence. “We are focused on cash conservation through maximising sales revenue, curtailing property expenditure, reducing overheads and ensuring that we remain covenant compliant,” he added.

Mr Cunningham is leading the company in the absence of 49-year-old chief executive Rupert Dickinson, who is currently on a leave of absence due to illness. Shares in Grainger yesterday rose 4% to 161.75p.

For live price information on Grainger shares and an archive of all stories we have written about the firm visit www.nebusiness.co.uk/markets