Vistry says it will play ‘key role’ in Government plans for affordable homes

Vistry has said it sold more homes this year, as it expects its focus on building affordable properties to play a “key role” in helping the Government achieve its housing targets.

The Kent-based developer said it completed 7,792 house sales in the first half of the year – 9% more than the same period a year ago.

This was driven by strong demand across its partnerships business, through which it works with local government authorities and housing associations to build lower-cost homes.

The growth in sales reflects a “significant outperformance compared to the traditional housebuilding market”, Vistry said, referring to competitors who have grappled with tougher conditions across the housing market.

Addressing the country's acute housing crisis is at the centre of the new Government's plans

On Wednesday, Barratt, one of the UK’s biggest housebuilders, reported a near 20% drop in the number of house sales it completed in the year to the end of June, compared with the prior year.

Meanwhile, Vistry said its half-year pre-tax profit increased by 7% to £186 million.

The group, which operates in regions across England , said it was expecting to play an important part in the Government’s plans to build more homes across Britain over the next five years.

“Addressing the country’s acute housing crisis is at the centre of the new Government’s plans, with the re-introduction of housing targets that would see a more-than-doubling of the supply of new affordable housing,” Greg Fitzgerald, Vistry’s chief executive, said.

He said the company has the “capacity to step up” the amount of homes produced to support the plans.

It also expects further initiatives, including around unlocking funding for housebuilding, to be introduced in the upcoming autumn Budget.

Nevertheless, Vistry said selling to private buyers on the open market had been “relatively constrained” this year, “reflecting macro and political uncertainty and the higher interest rate environment”.

But there have been signs of demand picking up over the summer following the July general election and the Bank of England’s decision in August to cut UK interest rates.

Looking ahead, the company said it expects to complete more than 18,000 home sales over the full year and report higher profits.