𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Housebuilder Vistry has welcomed “unprecedented” Government funding for cheaper homes in the UK, as it said affordability challenges for first-time buyers have persisted.

The London-listed company said it was expecting lower profits for the first half of its financial year after selling fewer homes.

It completed the sale of 6,800 homes over the first six months of the year – less than the 7,792 it sold the same time last year.

Nearly three quarters of the total Incorporated homes sold for its partners – which include housing associations, local authorities, and private rent groups – while the rest was for the open housing market.

Vistry said demand from its affordable housing partners was weaker due to uncertainty ahead of the Chancellor’s spending review in June.

It also flagged that while there were signs of demand lifting on the open market, affordability challenges, particularly for first-time buyers, have persisted.

This is partly due to expectations of further interest cuts being pushed further out this year.

The group’s adjusted pre-tax profit is expected to have slumped to £80 million over the first half, from £120.7 million the prior year.

However, Vistry said that the Government stepping up funding into affordable homes was “hugely welcome” and would help deliver more work for the business over the second half of the year.

The Chancellor announced last month that the Treasury has allocated £39 billion to social and affordable homes over the next decade.

Chief executive Greg Fitzgerald said: “The Government’s recently-announced £39 billion affordable homes programme is hugely welcome, and this unprecedented funding, together with a 10-year rent settlement and the expected reintroduction of rent convergence measures, will drive the delivery of the high-quality affordable homes the country so badly needs.”

Vistry is also eyeing further interest rate cuts over the rest of 2025 to boost activity in the housing market.

This should help bolster profits which are on track to increase this year, the company told investors.