The group said it is on track to deliver more than 18,000 completions in 2023-24, which would be 10% higher than the previous year and up from guidance for 17,500
Housebuilder Vistry is gearing up for a profitable year, announcing expectations of higher half-year and annual profits as it raises its new home build target.
Set to address shareholders at its annual general meeting on Thursday, Vistry has revealed plans to complete over 18,000 homes in 2023-24. This marks a 10% increase from the previous year, surpassing earlier projections of 17,500 completions.
The boost in output is attributed to robust forward sales, which have climbed 10% year-on-year to £4.9billion. Vistry’s says its strategic focus on affordable housing has played a significant role in its success, providing a buffer against the challenges posed by persistently high interest rates, which remain at a 16-year peak of 5.25%.
Last year, the group announced a strategic merger of its housebuilding division with its affordable homes sector, Partnerships. This division collaborates with local government authorities and housing associations to construct lower-cost homes.
Greg Fitzgerald, Vistry’s chief executive, said: “The group has had a good start to the year with our unique Partnerships model clearly demonstrating its market resilience. 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 2023-24, with half-year and full-year profit expected to be ahead of last year.”
The company also reported an improving trend in open market sales rates since the start of the year, with prices remaining “relatively flat”. However, to stimulate demand, the firm is offering incentives to buyers at around 4%.
Homebuyers and mortgage borrowers have been significantly impacted by interest rates, which have been raised to the highest level since 2008 in an attempt to control soaring inflation. The Bank of England has been anticipated to cut rates this year, but it remains uncertain when or if the first reduction will occur, which has negatively affected the property market.
Earlier this month, lending giant Halifax stated that house prices have “largely plateaued”, inching up by 0.1% month-on-month in April after a drop of 0.9% in March, according to its index. Halifax said property values grew by 1.1% annually, accelerating from a 0.4% rise recorded the previous month.
