Vistry Group expects to complete 18,000 homes by 2024

Vistry Group expects to complete construction of more than 18,000 homes this year following a strong performance in the first half.

The property developer, formerly known as Bovis Homes Group, said it was “well positioned” to build more than 18,000 homes by 2024, up from 16,118 last year and a previous target of 17,500.

In the first six months of this year, the FTSE 100 company saw completions expand 8 per cent year-on-year to around 7,750 homes.

Its sales rate also increased to an average of 1.21 units, from 0.86 units, supported by growing demand and the transformation of its business to a fully partnership model.

Vistry announced the merger of its housebuilding and partnership divisions last September, saying the move would help it focus on meeting the shortage of affordable, mixed-tenure properties in the UK.

Two months later, it struck an £819m deal with housing providers Sage Homes and Leaf Living to deliver almost 3,000 new homes.

The Kent-based company has since secured another deal with Leaf Living worth around £580m and one with Blackstone and minority investment partner Regis Group to deliver 1,750 properties.

Vistry forecasts that partner-financed sales will account for around three-quarters of housing completions by 2024.

In addition to this, the company expects annual operating profit to rise by around 10 per cent to £227 million and pre-tax profit to rise by 7 per cent to £186 million on an adjusted basis.

Greg Fitzgerald, Vistry’s chief executive, said: “The group has delivered a strong performance in the first half, supporting the board’s confidence in its full-year expectations.”

He added: “We look forward to working with the new Government to tackle the country’s housing crisis and are very well placed to support their ambition to deliver the biggest boost to affordable housing in a generation.”

The Labour Party has promised to build 1.5 million more homes over five years – the equivalent of 300,000 a year – to try to revive the UK’s flagging economy.

He said this would be achieved by updating the National Policy Planning Framework, reinstating mandatory housing construction targets, developing on lower quality “grey belt” land and creating a number of new towns.

Just 212,570 new properties were built across England in the 12 months to March 2023, well short of the previous Government’s target of delivering 300,000 a year.

Critics have blamed the country’s low residential construction rates on Nimbyism, the planning system, interest rate rises and staff cuts in local councils.

Vistry Group Shares They were down 1.4 percent at 12.74 pounds on Tuesday afternoon, but are still up around 40 percent so far this year.