黑洞社区

Vistry has reported an 8% increase in completions in the first half of the year, the firm said in a trading update this morning.

The housebuilder said it completed 7,750 homes in the six months to 30 June, up from 7,143 in the same period the previous year.

Vistry also said it is 鈥渃onfident鈥� it can build 18,000 homes in 2024 as a whole. This figure would eclipse the 17,206 homes delivered by Britain鈥檚 biggest housebuilder Barratt last year.

Vistry鈥檚 strategy in recent months has shifted towards large forward sale agreements with investors 鈥� in which it signs deals to pre-sell homes in schemes.

In May it announced a 拢580m sale of 1,750 homes across 36 developments to Leaf Living, a PRS housing manager backed by Blackstone and Regis.

Three quarters of Vistry鈥檚 completions in the half-year have been 鈥榩artner-funded鈥� deals, including deals with housing associations and local authorities such as section 106 affordable housing pre-sales, with a quarter for direct open market sale.

Vistry said it expects this percentage of partner-funded homes to drop to 65% after 2024 as the open market recovers.

Vistry also repeated its statement that its building costs are lower as a result of its 鈥渙ngoing engagement with the supply chain鈥�.

>>See also: 鈥業鈥檓 extremely demanding鈥�: Greg Fitzgerald on delivering the Vistry growth plan

Vistry last year sparked an outcry after it wrote to contractors to ask for a 10% price cut with the business saying it would lead to greater efficiency and more work in the longer term for contractors. The firm defended the move saying it would lead to more work in the longer term for contractors.

In an interview with 黑洞社区 earlier this year, chief executive Greg Fitzgerald admitted many in the supply chain were initially furious. 鈥淲eek one it was basically 鈥楩uck off, I鈥檓 not putting any more money in Greg Fitzgerald鈥檚 pockets. No way, not a chance鈥�.

鈥淲eek two they鈥檝e had a call from another housebuilder saying they鈥檙e stopping a development. Ok, they鈥檒l come in for a chat. Week three, they鈥檙e offering a discount. By week five they鈥檙e now scrambling to maybe give us more because they want that work.鈥�

Vistry鈥檚 forward sales for the half year are up 21% year-on-year at 拢5.1bn,

Forward sales are up 21% on the prior year and total 拢5.1bn (2023: 拢4.2bn), while its net debt has fallen from 拢329m to 拢323m. Its adjusted pre-tax profit rose 7% to 拢186m.

Fitzgerald added: 鈥淥ur 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.

鈥淲e look forward to working with the new government to address the country鈥檚 housing crisis and are extremely well placed to support its ambition of delivering the biggest boost to affordable housing in a generation.鈥�