Vistry Group PLC (VTY)

(Alliance News) - Vistry Group PLC on Wednesday announced a lower forward order book, but noted strengthening demand from the private rented sector market.

The Kent, England-based house builder said the forward order book totals GBP4.6 billion in the year to date, down 6.1% from GBP4.9 billion a year ago.

"In the open market, we have seen an improvement in our sales rate over the past eight weeks and we expect this trend to continue. Mortgage availability and affordability is improving, with lenders increasing their product range and borrowing rates reducing ahead of further expected cuts to the Bank of England base rate. We continue to expect FY25 Open Market volumes to be at a similar level to FY24, with the impact from a reduction in sales outlets as we roll-off our former Housebuilding sites offset by an increase in our Open Market sales rate," Vistry said.

It added that it saw strengthening demand in the private rented sector and a "momentum of investment funds being raised in this sub-sector of the market."

Further, Vistry said the UK government's announcement in March of an additional GBP2 billion "top-up" affordable housing funding to projects starting by March 2027 and completing by June 2029, provided "positive impetus" to the sector.

It added: "We are seeing some upward pressure on both material and labour prices which we are mitigating, where possible, through proactive engagement with our sub-contractors and suppliers. We continue to expect low single digit build cost inflation for FY25."

Vistry shares fell 3.5% to 611.04 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

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