Vistry highlights high demand from for-profits in affordable homes as completions growth set to top 10%

The house builder also flagged its new focus on partnerships with RPs and local authorities, which it announced in September, alongside “strong interest” from private rented sector providers.

The partnerships part of Vistry specialises in joint ventures with housing associations, other public sector businesses and private rented sector providers.

Greg Fitzgerald, chief executive of Vistry, said: “Working closely with our partners, we are seeing good demand in the partner funded market and accompanied by an improving trend for our open market sales, are on track to deliver more than 10% growth in completions in FY24.

“This is underpinned by our strong forward sales position totalling £4.9bn, up 10% on the same position last year.”

Of this, £2.1bn is for delivery this year. Building material costs are also set to be lower in 2024 due to the house builder’s supply chain engagement in 2023.

“Our high level of visibility on forward sales and build programme enables us to work closely with our subcontractors to secure beneficial terms,” Vistry said.

The firm added that it expects to release capital in 2024 thanks to a series of operational and capital efficiency initiatives.

“Our timber frame operations will step up delivery in this year, with around 4,000 of our new homes to use our timber frames and further significant growth planned in 2025,” it noted.

Half-year and full-year profits are expected to be ahead of last year, Vistry said, anticipating a 40% return on capital employed and £800m operating profit in the medium term.

Vistry also said it had secured land and development opportunities for 6,037 mixed-tenure new homes across 19 developments in the year to date.

The update was provided ahead of its annual general meeting, which is being held today (Thursday 16 May).

Last month, Vistry and LiveWest acquired a site in Cornwall with plans to deliver up to 245 homes, of which half will be classified as affordable.

Vistry has also signed two deals with Homes England to deliver around 1,000 homes in the Midlands, with the majority expected to be built offsite.

The house builder said the “majority” of the 1,000 homes will be built using timber frames at its Vistry Works East Midlands factory in Leicestershire.