Latest news with #Vistry
Yahoo
15-07-2025
- Business
- Yahoo
Housebuilding giant hit by London exodus as sales slump
One of Britain's biggest housebuilders has warned of weaker-than-expected sales as buyers shun London. Barratt Redrow sold 16,565 homes in the year ending June 29, falling short of a forecast of between 16,800 and 17,200 that it had set out in April. The developer cited 'fewer international and investor completions than expected' in London, adding that 'homebuyer confidence remains fragile and mortgage rates remain high compared to recent years'. The housebuilder stated: 'The London housing market has been particularly challenging with weak demand from both domestic and international homebuyers.' London's housing market has slumped after the Chancellor ended stamp duty discounts in April. Mortgage rates have also stayed higher than expected, which has dented affordability. These have resulted in a wave of price reductions across the capital. Shares in Barratt Redrow fell by as much as 13pc in early trading before recovering to around 8pc in the mid-morning. Around £778m has been wiped off its value. Barratt Redrow said it expected to sell between 17,200 and 17,800 homes in its 2026 financial year, reflecting 'revised expectation of broadly flat average sales'. None the less, it noted that mortgage market competition and availability have improved. The bill for repairing safety defects on high-rise homes, required to avoid another Grenfell-style cladding disaster, has also risen by around £98m to total £248m after discovering issues at buildings within its southern division and at a large London development. It said it will pursue its subcontractors to recover those costs. However, the developer said it will deliver profit in line with market expectations, which will be shared in future trading updates. David Thomas, chief executive, said: 'Although demand during the year has been impacted by consumer caution and mortgage rates not falling as quickly as hoped, there remains a long-term structural under-supply of housing in this country. 'We remain confident in our medium-term ambition to deliver 22,000 high-quality homes a year, and in the long-term demand for our high-quality homes.' The news comes after findings by Molior showed sales of new-build homes in the capital plunged to their lowest level since the global financial crisis. The decline, which was more pronounced over the past three months, was blamed on the insufficient financial incentives for property developers to build new homes and for buyers to acquire them. This has led to fewer developments and sales. Last week, rival housebuilding giant Vistry posted a profit drop of a third to £80m for the first half of the year, after issuing a string of profit warnings in recent months. It reported 6,800 home completions for the six months ending June 30, down from 7,792 in the previous year. Vistry cited sluggish demand from its affordable housing partners on the back of funding constraints and uncertainty ahead of the Chancellor's June Spending Review, but outlined its hopes that the Government's £39bn affordable homes strategy will boost its business. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Time of India
11-07-2025
- Business
- Time of India
UK: Vistry's pre-tax profit slumps nearly 34% in H1 2025
BENGALURU: British homebuilder Vistry on Thursday said it expects a near 34% slump in adjusted pre-tax profit for the first half of 2025, but backed its forecast of annual profit growth due to increased government funding for affordable homes. Britain 's construction industry has been slowly recovering after high interest rates and a property transaction tax pressured developers, with recent signs of stabilising borrowing costs and increased government support fuelling cautious optimism. Last month, British finance minister Rachel Reeves announced an additional 10-billion-pound ($13.58 billion) investment to build thousands more homes, under her first multi-year spending review. The funding and other initiatives are expected to boost new contracts with affordable housing partners in the second half of 2025, with this momentum expected to carry into 2026, Vistry said. "Whilst we have seen some periods of improvement in open market demand, affordability challenges, particularly for first-time buyers, have persisted with expected interest rate cuts being pushed further out," it said in a statement. While demand may recover and support revenue, Vistry's profit margins are likely to remain under pressure as it pursues bulk affordable housing deals in a challenging market environment, Investec analyst Aynsley Lammin said. The company, which focuses on affordable housing, has been accelerating discounting and bulk selling to boost cash. Its net debt stood at about 295 million pounds at June end, compared with 322 million pounds a year ago. Vistry shares jumped by as much 5.4% early on Thursday, but later see-sawed between flat and marginally lower in volatile trading. The company expects adjusted pre-tax profit for the first half of 2025 to fall to 80 million pounds ($108.8 million) from 120.7 million pounds a year ago because of rising costs. Vistry, which did not pay a final dividend last year to cut expenses, said it continues to expect a low single-digit percentage rise in operating costs this year.
The Independent
10-07-2025
- Business
- The Independent
Vistry welcomes ‘unprecedented' funding to boost building of affordable homes
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.
Reuters
10-07-2025
- Business
- Reuters
Vistry sees first-half profit dip, expects UK home funding to drive growth
July 10 (Reuters) - British homebuilder Vistry (VTYV.L), opens new tab on Thursday said it expects to report a near 34% slump in adjusted pretax profit for the first half of 2025, but stuck to its forecast for annual profit growth due to increased government funding for affordable homes. Britain's house-building industry has been slowly recovering after high interest rates and broader economic volatility pressured developers, but recent signs of stabilising borrowing costs and increased government support are fuelling cautious optimism in the sector. Last month, British finance minister Rachel Reeves announced an additional 10-billion-pound ($13.58 billion) investment to build thousands more homes in England, under her first multi-year spending review. The funding and other initiatives are expected to boost new contracts with affordable housing partners in the second half of 2025, with this momentum expected to carry into 2026, the company said. For the period ended June 30, the company expects to report a fall in adjusted pretax profit to 80 million pounds compared with 120.7 million pounds in the same period a year ago, weighed down by rising costs. "Whilst we have seen some periods of improvement in open market demand, affordability challenges, particularly for first-time buyers, have persisted with expected interest rate cuts being pushed further out." Vistry said in a statement. Vistry, which had skipped a final dividend last year to cut costs, said it continues to expect a low single-digit build cost inflation in 2025.
Yahoo
10-07-2025
- Business
- Yahoo
British homebuilder Vistry's first-half pre-tax profit slumps on soft market
(Reuters) -British homebuilder Vistry reported on Thursday a 33.7% slump in adjusted pre-tax profit for the first half of fiscal 2025, as rising costs and a sluggish housing market continued to weigh on performance. Britain's house-building industry has been slowly recovering after high interest rates and broader economic volatility pressured developers, but recent signs of stabilizing borrowing costs and increased government support are fuelling cautious optimism in the sector. The group reiterated its forecast for a year-on-year profit increase in 2025, supported by higher affordable housing output and ongoing cash generation measures. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
