Vistry reports 22 per cent slide in home completions as rate hikes bite
Vistry Group said the number of homes it completed during the quarter was down 22 per cent compared to the same period last year, as surging mortgage rates continue to hit UK housebuilding companies.
The London-listed firm blamed a “tough” economic climate for the decline, with the housebuilder completing 2,847 homes in the period down from 3,219 compared to last year.
Adjusted revenue also fell to £810m down from £902m the previous year.
Just last week, fellow housebuilder Barratt was also bruised by the central bank’s rate hike decision reporting a 49 per cent decline in the number of first-time buyer reservations during the year.
However, the group still predicts to deliver adjusted profit before tax for the full year in excess of £450m.
Vistry said it has been helped by its partnerships with affordable property maker Homes England, securing a further £67m to build over 2,000 accessible homes across the country.
“Following the recent increase in the Bank Rate and mortgage costs we have seen a slowdown in the open market private sales rate, with both Partnerships and Housebuilding mitigating this through bulk transactions,” the company said in a statement today.
“The group delivered a half year performance in line with our expectations despite the challenging macro-economic conditions and higher interest rate environment. Partnerships is demonstrating its resilience and remains on track to deliver revenue growth in the full year,” Greg Fitzgerald, chief executive of Vistry, said.
“Housebuilding is maintaining a controlled and disciplined approach, taking the opportunity to deliver bulk sales to support overall sales rates and open market pricing,” he added.