Vistry and build-to-rent giant Sigma extend partnership to meet surging tenant demand
Housebuilder Vistry has signed on to build an additional 5,000 new homes as the sector seeks to navigate a housing market in flux.
The firm said today it has entered an agreement with build-to-rent specialists, Sigma Capital Group to deliver the quota across a number of UK regions over the next five years.
The projects will sit under Sigma’s Simple Life brand and construction will run through Vistry’s Countryside Partnerships unit.
To date, Vistry has built more than 8,500 homes of the same model in partnership with Sigma at a cost of £2.25bn.
Vistry chief Greg Fitzgerald said: “High-quality build-to-rent homes continue to be an important offering for our mixed-tenure communities, and we are thrilled to be continuing our long-term partnership with Sigma.”
Graham Barnet, boss of Sigma Capital said: “We currently have over 3,500 additional homes under construction across the UK and with a track record of 98% let or reserved at any given time, and above industry standard build-to-rent customer review scores, we’re looking forward to delivering many more much needed build-to-rent family housing over the next five years with our partner Vistry.”
The announcement comes at a confusing time for the UK housing sector.
On the one hand, home ownership is running at multi-decade lows and Prime Minister Rishi Sunak’s hand is being forced to turn out sweeping changes to housing policy to try and get the country building again.
Under plans unveiled yesterday, the government is easing restrictions on building in urban areas, where prices are most pressured and where Tory votes are rarely found.
Councils missing their housing targets will be restricted in when and where they can refuse permission and more commercial buildings will be evaluated for potential domiciles.
On the other, housebuilders like Vistry are emerging from a torrid period of inconsistent, occasionally crushingly low, demand since the pandemic into one that appears to be offering stable growth prospects in the medium term.
In a trading update last month, the FTSE 250 housebuilder said pre-tax profits for 2023 were ahead of its previous guidance and in line with last year at £418m.
It added that it was “optimistic” on recent cuts to mortgage rates.