Vistry Group Trading Update and Strategic Outlook
Chief Executive’s Statement
Greg Fitzgerald, Chief Executive of Vistry Group, expressed confidence in the company’s performance trajectory and market positioning as the second half of the year progresses. According to Fitzgerald, activity levels have strengthened in recent months, reflecting both internal operational improvements and a more supportive external environment. He noted that ongoing discussions with strategic partners and government bodies signal a growing appetite to accelerate delivery within the affordable housing sector. This renewed momentum, he stated, reinforces the Group’s positive outlook for the future.
Fitzgerald emphasized Vistry’s readiness to play an expanded role in supporting national housing priorities. In particular, the Group is well positioned to contribute to the Affordable Homes Programme and aligns closely with broader growth objectives set for the affordable housing market. The company’s partnerships-driven approach, integrated business model, and strategic collaborations continue to support this ambition.
Current Trading Performance
The Group confirmed that its expectations for full-year performance remain unchanged. Vistry continues to anticipate year-on-year profit growth for FY25, supported by a robust forward order book and increasing demand from its partner base. The company sees strong medium-term growth potential, driven largely by its differentiated partnerships model, which prioritizes collaboration with Registered Providers, Local Authorities, and Government agencies.
Notably, the Group has benefited from the early effects of the Government’s recently announced affordable housing support measures. These initiatives have begun to translate into new partner contract opportunities, improving the development pipeline. However, the delay of the Autumn Budget has introduced a degree of near-term uncertainty, particularly around the pace and scale of future government-backed delivery. Despite this, Vistry expects the Budget to offer more clarity around funding mechanisms and policy direction that will underpin the Government’s future housebuilding targets.
Affordable Housing and Grant Funding Support
In September, the Group received confirmation of a £50 million grant award from Homes England. This funding is part of a broader £2 billion package announced earlier in the year to stimulate affordable housing delivery. Progress has already been made in allocating this grant toward specific projects scheduled for delivery in 2025. The funding is expected to support a number of affordable housing schemes, reinforcing Vistry’s role in addressing the nationwide shortfall in accessible housing.
Demand from Registered Providers and Local Authorities has continued to strengthen since the Group’s half-year update in September. Vistry has been closely collaborating with its partner network and anticipates concluding several significant Partner Funded agreements during the fourth quarter. These agreements are set to support full-year performance and establish strong momentum heading into 2026. Additionally, the company is actively advancing opportunities tied to the Affordable Homes Programme, the recently introduced 10-year rent settlement framework, and the anticipated reinstatement of rent convergence measures. These policy developments are expected to increase funding certainty and encourage sector-wide development activity.
Vistry is also conducting due diligence on sites proposed for transfer into its joint venture with Homes England. Progress continues toward initial acquisitions, with the joint venture expected to play a key role in scaling delivery capacity.
Open Market Housing and Sales Performance
While the company has observed a modest improvement in Open Market private sales performance since the summer, it remains cautious regarding the pace of broader market recovery. Open market conditions continue to be influenced by macroeconomic uncertainty, including buyer sentiment and financing conditions. To support conversion rates and maintain sales momentum, Vistry is deploying targeted incentives equivalent to approximately 6 percent of the open market sale price.
Despite these market dynamics, all Open Market homes scheduled for delivery in 2025 have already been reserved, providing strong visibility on near-term build and revenue pipelines.
Overall, the Group’s sales rate since 1 July has increased by 11 percent year-on-year to 0.81 (compared to 0.73 in 2024). The year-to-date sales rate stands at 0.85 (2024: 1.02). The forward order book remains stable at £4.3bn, consistent with September levels, reflecting strong delivery progress on active developments while maintaining disciplined replenishment through new contract wins.
Land Strategy and Development Pipeline
The Group continues to pursue a selective approach to land acquisition, prioritizing strategically positioned sites that support long-term development objectives. At the same time, the company is actively reducing its overall land bank to maintain capital discipline and ensure alignment with its partnerships delivery model. Since 1 July, Vistry has secured 3,503 plots across 11 sites, compared with 4,256 plots across 16 sites in the same period last year. Year-to-date, 6,616 plots have been secured across 25 sites.
Build Costs and Efficiency Measures
Build cost inflation remains consistent with expectations, tracking at low single-digit growth for FY25. The company continues to benefit from proactive supply chain engagement and economies of scale inherent to its partnership-led operations. Material prices have stabilized, while labor cost pressures are being managed through increased visibility and continuity of workflow. Further efficiency gains are being pursued through standardization, greater use of timber frame construction, and productivity improvements delivered via Vistry Works.
Financial Position and Outlook
The Group remains focused on strong cash management, particularly through disciplined work-in-progress control. As a result, Vistry expects to deliver a reduction in net debt as at 31 December 2025, marking continued progress in strengthening its financial position.
Source Link:https://www.vistrygroup.co.uk/
