Vistry set to hit 18k homes target

The group says that it is confident of delivering more than 18,000 units this year, with its Partnerships model outperforming the traditional housebuilding market.

Related topics:  Construction,  Housebuilding
Property | Reporter
10th July 2024
construction UK
"We look forward to working with the new government to address the country's housing crisis and are extremely well placed to support its ambition of delivering the biggest boost to affordable housing in a generation"
- Greg Fitzgerald - Vistry

In its latest trading update for the half year to June 30 2024, Vistry revealed that its adjusted operating profit is expected to be up by approximately 10% against last year at around £227m with adjusted profit before tax up 7% at around £186m.

Total completions in the half are up 8% to around 7,750 units. Around 75% of total completions are partner funded.

The firm stated that “Registered providers and local authorities have secured good levels of additional affordable and s106 affordable housing, and we have continued to see a pick-up in demand from the Private Rented Sector.”

Vistry noted the financial pressures on RPs with remediation works of existing stock which has particularly constrained RP capacity in London. They explained: “We are maintaining delivery by continuing to work closely with our partners and ensure Vistry remains their partner of choice for their new housing investment.”

Strong forward sales

The group's forward sales position is up 21% on the prior year and totals £5.1bn. The group's sales rate in the period increased to an average of 1.21. Vistry says the year-on-year increase reflects both stronger demand and the transition of its business to a 100% Partnerships model.

In the open market, the group has seen some positive momentum in demand in the period and pricing has remained relatively flat, with incentives running at around 4% of open market sales prices. Vistry said that the market remains "relatively constrained reflecting ongoing macro and political uncertainty and the higher interest rate environment.”

Greg Fitzgerald, Vistry chief executive, said: "The group has delivered a strong performance in the first half which underpins the board's confidence in its expectations for the full year. Our Partnerships model is significantly outperforming the broader housebuilding market and we are confident we will deliver over 18,000 completions for the full year and make progress towards our medium-term targets.

"We look forward to working with the new government to address the country's housing crisis and are extremely well placed to support its ambition of delivering the biggest boost to affordable housing in a generation."

New government

On the new government, the group said: “We are supportive of their plans to introduce mandatory housing targets, reform the National Planning Policy Framework, add new planning officers and prioritise brownfield and 'grey belt' land.

“Our unrivalled expertise and track record in Partnerships housing delivery and our current growth momentum, uniquely positions Vistry to play a key role in helping the government address the country's affordable housing crisis. We are encouraged that they are seeking to move quickly and are in a strong position to support this.”

More like this
Latest from Financial Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.