Grainger, the UK’s largest residential landlord, said a boost in sales and reduced level of acquisitions meant it would stay within the terms of its banking agreements.

Full-year profits to the end of September are expected to be 'in line' with 2007 in spite of an 18 per cent rise in sales to £168m, the company said yesterday.

The figures excluded movements in property prices, which the company said would likely 'result in a decrease in property values for this portfolio of about 15%'.

Grainger brushed aside concerns that adverse conditions in the property sector would cause it to breach debt covenants, helped by total acquisition activity of £122m, down from £403m in the previous year.

Financial Times, The Times, Daily Telegraph