Vistry signs £580m build-to-rent deal with private equity giants Blackstone and Regis

The first completions under the agreement are expected by the end of June 2024, with the majority of homes expected to complete within the next two years.

Greg Fitzgerald, chief executive of Vistry Group, said: “By working in partnership with organisations like Leaf Living, we can maximise the number of high-quality homes we deliver every year. 

“This agreement supports our differentiated business model, with the certainty provided by the pre-selling of homes enabling us to accelerate our build programmes, guarantee work for our supply chain, reduce sales and build costs and create vibrant new communities.”

Vistry is aiming to pre-sell 65% of its new homes to housing providers to meet its financial targets.

Blackstone entered the UK affordable housing market in 2017 when it launched Sage Homes, a for-profit provider of affordable homes. In 2021, Blackstone and Regis launched build-to-rent firm Leaf Living.

James Seppala, head of European real estate at Blackstone, said: “Institutional private capital can play an important role in providing high-quality housing stock across the UK, particularly in the private rented sector which is significantly undersupplied today.

“Partnerships such as these can meaningfully accelerate the delivery of new homes and help alleviate structural undersupply across the sector.”

In April, Blackstone gave its first interview to Inside Housing. Gemma Kataky, managing director of real estate, said that the need for private sector investment in affordable housing is increasing and that partnerships with housing associations are critical.