THE economy is set to remain “subdued” with low levels of property sales and mortgage approvals, according to Grainger.

Britain’s biggest residential landlord made the forecast in a trading update released this morning. The company said there were regional variations in the property market with the most buoyancy in London.

Although Newcastle-based, the company is benefiting from the trend because the majority of its housing stock is in the South East. 

Grainger sold £79.5m of residential property in the four months to the end of July and a further £40.5m is in the process of being sold. It means sales in the pipeline hit £189.2m, up from £154.8m a year ago.

Chief executive, Andrew Cunningham, said: “Our ability to grow our properties under management through new initiatives and our ongoing success in disposing of assets above book value is testament to the expertise and breadth of our specialist management teams across the UK and the resilience of our portfolio.”