Vistry welcomes ‘unprecedented' funding to boost building of affordable homes
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
4 minutes ago
- The Guardian
Starmer and Reeves should consider wealth tax, says former shadow chancellor
The Treasury should consider a wealth tax to close the growing gap in the public finances, according to a Labour former shadow chancellor. Anneliese Dodds, who held the role under Keir Starmer in opposition, said ministers must have a 'full and frank discussion' with the public about the 'really big decisions' they had to take at this autumn's budget. With Rachel Reeves aiming to fill a financial hole that economists say could exceed £20bn, the senior Labour MP said there was 'no silver bullet' to funding big-ticket items such as defence but the chancellor should consider tax rises. Dodds quit her post as international development minister in February over a decision to slash the aid budget to pay for increased defence spending – a move she said was a mistake that would have a big impact on global security. With Russia and China already stepping into the gap to boost their own global influence, she said now was not the time for the UK to be 'walking back' from using soft power. In her first interview since standing down, Dodds told the Guardian: 'It's important that we have a longer-term approach. That does mean asking and confronting difficult questions around our fiscal position, around taxation. But if we're open and honest about the nature of the challenge that we face, we cannot duck that. 'Now is a time when we're seeing forces outside our country's control impacting on our security. It's important to have an open conversation with the public and say that means we will need to change when it comes to tax. That needs to be done in a way where those with the broadest shoulders take more responsibility.' While she did not set out exactly where wealth taxes might fall, Dodds urged the Treasury to 'look carefully' at the work of economist Arun Advani, whose wealth tax commission in 2020 recommended a one-off levy on millionaire households as a better way of raising revenue than increasing taxes on workers or consumers. She joins a growing chorus of Labour MPs, not all from the left of the party, calling for further wealth taxes this autumn. However, proposals for an annual 2% tax on assets over £10m have been denounced as 'daft' by the business secretary, Jonathan Reynolds. Government insiders have questioned whether it would raise any funds. Dodds acknowledged there would be consequences from any new wealth tax and said she did not underestimate the challenges involved. However, she played down suggestions the policy would automatically lead to a reduction in the tax base as people moved assets overseas. She added: 'There's no silver bullet here, and I've been quite cautious about claims in the past that there's one single change to tax that could suddenly, immediately inject enormous amounts of money into the government coffers without any further implications. That's simply not the case. There will be consequences.' Dodds also suggested that Reeves should look again at her fiscal rules to help deliver an increase in defence spending, rather than through further cuts to aid. The government has pledged to spend 2.5% of GDP on defence from 2027, with an ambition to reach 3% in the next parliament. It has not said how this would be paid for. She said it would be very difficult for the UK to change its fiscal rules to borrow more to invest in defence, as Germany – which was in a stronger economic position – did when it loosened its 'debt brake' in March. But she added: 'There's no route forward without some risk and without some cost.' Forecasts twice a year from the Office for Budget Responsibility have ended up driving fiscal policy, injecting more uncertainty into the system, she said. The IMF has suggested the government should consider having the public finances formally assessed only once a year instead. Dodds said she had little doubt the government would have to further increase defence spending. But she said this could not come from further cuts to the aid budget without an impact on global security and migration patterns. 'I believe the public know that also,' she said. 'We need to have a really full and frank discussion now nationally about how we will deliver that more secure country, but also about the challenges of doing that at the same time as getting our public services up off their knees. 'We did see a reduction in our soft power, and we saw a reduction in what makes our country stronger. Especially now with the rise of China, Russia, becoming far more involved in the continent of Africa, and many other geopolitical pressures, now isn't the time to be walking back from those commitments. 'We will also see the impact on global security. We also see the impact of it in population movements. It's no surprise that the number of people seeking asylum in the UK from Sudan, for example, has increased. There is eventually that knock-on impact. There's no question about that.' Dodds said there was 'no magic wand' to bring down the number of asylum hotels, which have been funded from the aid budget. Suggestions that the government could make big savings from quick closures were 'just not credible'. She did not criticise Starmer directly for his 'island of strangers' remarks, which the prime minister has since said he regretted, and said it was 'right to acknowledge people's concerns' about small boat crossings but she urged ministers 'to be clear that we are talking ultimately about human beings'. As a former Labour chair, Dodds suggested the party had to do more to explain what it stood for to take on the rise of Nigel Farage's Reform UK. She said: 'What I find time and again when I speak with people who are considering Reform is that they want politicians to say what they think. They want politicians who are upfront about what they believe and who act on their beliefs.' She described Jeremy Corbyn's new movement as 'a bit like the People's Front of Judea' from Monty Python's Life of Brian but warned that it could end up splitting the vote: 'We have seen in some other countries, a splintering of the left, and centre-left parties doing very badly.'
The Sun
4 minutes ago
- The Sun
Energy bills could RISE for wealthier households to help poorer ones
ENERGY bills could rise for wealthier households to help poorer ones, under new plans by the watchdog. Ofgem launched a major review into energy pricing this week, as it wants to ensure "fixed costs don't disproportionately affect vulnerable and low income consumers." 1 The regulator is also asking people around the country to give their views on how energy costs are shared. "We want to make sure energy system costs are shared fairly and transparently - so we're launching a review of all the costs that make up bills, looking at whether there are better ways to do this," Ofgem posted to its official X account. It said the energy pricing system needed to be updated in line with how households' energy use has changed. For example, many people are now using new technology such as smart meters to shift their energy usage to different times of the day. Some households are also using more energy than in previous years, it pointed out, thanks to the rise of electric cars and heat pumps. As part of the review, standing charges - fixed daily fees added bills by energy suppliers - could also be overhauled, as Ofgem said many consumers had complained the current system was "unfair". Ofgem boss Jonathan Brearley said: 'As we transition to a more secure, homegrown, renewables-based energy system, unit costs may decrease due to reduced reliance on expensive and volatile gas. "However, fixed costs – such as those needed to upgrade the energy network to deliver cleaner and more secure power to our homes – could rise. "This shift in the make-up of system costs means we need to review how we pay for energy and carefully consider how these costs are distributed. 'We know customers have real concerns about fairness and transparency in their bills, especially around fixed costs. That's why we're asking big questions about how and where these costs are shared – and whether there are better, fairer ways to do it. Stop Making This Air Conditioning Mistake: How to Slash Your Summer Energy Bill 'The launch of this review is the next step in developing fairer pricing for a changing energy system, ensuring more choice for consumers while protecting those most in need.' Ofgem said it was only seeking views at this stage and was not giving any recommendations. Currently, energy prices are made up of unit rates and daily standing charges. Your unit rate tells you how much you pay for every kilowatt-hour (kWh) of electricity and gas you use, while your standing charge covers the cost of supplying your electricity and gas supply to your home. The review was welcomed by some experts, who said there was a "clear need" to review how households pay for their energy. USwitch director of regulation Richard Neudegg said: 'The energy system is changing rapidly as we use more and more clean power, so the way we pay for it needs to change as well. 'There is a clear need to look at how pricing and the price cap works. 'As part of our move towards Clean Power 2030, it's vital to ensure consumers get real rewards for managing their consumption, ensuring standing charges are reasonable, as well as securing support for the vulnerable. 'These goals could be achieved within tariffs that consumers choose to be on, considering how the price cap itself works, and or through various support and grant schemes. "There are no firm proposals from Ofgem on particular shifts to pricing approaches yet, but it is good to see the regulator opening up the thinking on how this could best work.' However, others argued the plans don't go far enough to protect vulnerable families. Heat Trust boss, Stephen Knight, said: 'Forthcoming regulation of heat networks is great news for consumers, but Ofgem's proposals around price regulation do not yet deliver the level of fairness or price protection that heat network customers deserve. "Many households are still paying twice as much for heat as those using gas boilers – and that simply isn't sustainable. 'We need urgent action from government to rein in unregulated costs and reduce unacceptable levels of heat loss from poorly performing systems. 'Unless these issues are addressed, we risk undermining public confidence in heat networks at a time when they need to be a key part of our low carbon future.' He added: 'We urge government to go further than these proposals, engage more closely with consumers and their representatives and deliver the strong, enforceable protections that heat network users urgently need.' Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
Reuters
4 minutes ago
- Reuters
Musk's Neuralink to test brain chips in clinical study in Great Britain
July 31 (Reuters) - Elon Musk's brain implant company Neuralink said on Thursday it will launch a clinical study in Great Britain to test how its chips can enable patients with severe paralysis to control digital and physical tools with their thoughts. The company is partnering with the University College London Hospitals trust and Newcastle Hospitals to conduct the study, it said in a post on X. Neuralink said patients living with paralysis due to conditions such as spinal cord injury and a nervous system disease called Amyotrophic Lateral Sclerosis (ALS) qualify to participate in the study. The company raised $650 million in its latest funding round last month. It began human trials in 2024 on its brain implant after resolving safety concerns flagged by the U.S. Food and Drug Administration, which had initially rejected Neuralink's application in 2022. According to the company, five patients with severe paralysis are currently using its device to control digital and physical tools with their thoughts. Neuralink, founded in 2016, has raised about $1.3 billion from investors and is valued at roughly $9 billion, according to media reports, citing PitchBook.
