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Highlights

  • Weekly sales rates have increased to 1.32 over the past eight weeks, with forward order book at £4.6bn.
  • Government funding and investor interest are expected to boost demand in H2.
  • Significant cash generation and refinancing plans support a resilient financial position.

Vistry Group (LSE:VTY) has issued a trading update for the period from 1 January 2025 to date, ahead of its Annual General Meeting scheduled for noon today. The Group reports significant progress in delivering on its strategic priorities for the year and maintains its full-year financial expectations.

Following a positive start to the year, Vistry’s weekly sales rate has shown marked improvement, rising to 0.91 so far in 2025, up from 0.59 reported in March. In the past eight weeks alone, the sales rate has averaged 1.32, compared to 1.17 during the same period last year. The Group’s forward order book currently stands at £4.6 billion, down slightly from £4.9 billion in 2024, with £2.1 billion secured for delivery within the current year. Importantly, 72% of forecast FY25 units are already secured.

The Open Market segment has also seen encouraging signs of recovery, with increasing sales rates supported by greater mortgage affordability. Lenders have expanded their offerings, and borrowing costs are beginning to ease amid expectations of further Bank of England base rate cuts. Despite a planned reduction in sales outlets as legacy Housebuilding sites wind down, Vistry anticipates Open Market volumes in FY25 will remain in line with FY24, aided by rising sales efficiency.

A recent UK Government pledge of £2 billion in additional funding for affordable housing, announced in March, has injected optimism into the sector. The funding will be channelled through the existing Affordable Homes Programme and is earmarked for projects beginning by March 2027 and completing by June 2029. Vistry is actively working with partners to secure opportunities and expects further clarity following the Spending Review in June, which could trigger increased demand in the second half of 2025.

The Private Rented Sector (PRS) is also gaining momentum, with investment funds being raised at pace. Meanwhile, Partner Funded activity remains subdued, as anticipated, due to ongoing funding constraints among Registered Providers. However, the Group remains confident that Partner Funded volumes in FY25 will mirror 2024 levels and expects stronger momentum heading into FY26.

On the cost front, Vistry notes mild inflationary pressure on materials and labour, but is actively mitigating the impact through strategic supplier relationships. The Group continues to forecast low single-digit build cost inflation for the year.

Land acquisition remains disciplined, with 1,672 plots secured across six developments so far in 2025, compared to 6,037 plots from 19 developments in 2024.