British homebuilder Vistry posts 11% sales growth on affordable housing demand

By Raechel Thankam Job

(Reuters) -British homebuilder Vistry on Thursday reported a 11% year-on-year increase in overall sales since July 1 as demand for its affordable homes, mainly from housing associations, offset sluggish private market sales.

Sales averaged 0.81 homes per outlet per week since July 1, up from 0.73 in the same period last year.

Vistry, which focuses on affordable housing, is counting on government housing support, including multi-billion-pound investments to boost supply and help drive new contracts with affordable housing partners in the second half of 2025 and into 2026.

The company makes most of its sales through partnerships with local authorities, housing associations, and government providers.

The company said it is beginning to see a positive impact from the government's affordable housing support measures on new partner contracts, though it noted uncertainty caused by the upcoming Autumn Budget.

However, fears of stamp duty hikes in the November UK budget amid elevated inflation and living expenses have dampened demand from private buyers. Rivals including Barratt Redrow and Bellway have recently flagged sluggish sales and warned of growing uncertainty.

Vistry said while open market sales rates showed a small improvement since summer, it remains cautious about a demand recovery amid the economic uncertainty, continuing to offer incentives of up to 6% to support sales.

The company reiterated its target for a year-on-year increase in 2025 profits. Jefferies analysts said that may provide “some comfort” to investors worried about the broader operational challenges.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Harikrishnan Nair and Louise Heavens)