THE UK's continued love affair with house renovations has helped Grainger Trust, in Newcastle, to profits of nearly £60m.

Announcing its results for the past six months, the property investor said that despite predictions of a lull in the housing market, the company achieved record levels of profits, assets and share price growth.

Grainger said its share value had risen 25 per cent, while profits were up 23 per cent.

The company, which employs 170 staff across England, including 75 in Newcastle, specialises in buying and selling old or run-down properties.

Finance director Andrew Cunningham said the market remained strong for these kind of properties, buoyed by TV renovation shows such as Changing Rooms.

Mr Cunningham said: "There tends to be a higher demand for these kind of properties, because people like the idea of doing-up a house and shaping it to their dreams.

"We will continue to buy properties of this type because while a lull in the housing market makes selling on houses more difficult, lower prices give us more buying power."

The company said continued focus on its core tenanted business had seen the value of that portfolio grow by 14 per cent to £1.3bn.

It said the purchase of 486 regulated and 374 life-tenancy units had helped the company keep its status as the largest quoted investor in the long-term residential market.

Mr Cunningham said the company was planning to diversify by investing more in life tenancies, which allow investors to buy a property from owners who then stay on as tenants for life.

He said: "This allows us to buy property at a reduced rate and gives groups, like the elderly, the opportunity to release capital without losing their homes."