Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Vistry’s showing signs of returning to life after a dismal period of operational slip-ups and profit guidance downgrades, as the group saw its sales rates climb 11 per cent higher so far in the second half.
“Importantly, the UK Government’s £39 billion pledge to increase the amount of affordable housing is having the desired effect.
“The money is starting to flow, and that’s seen partner-funded activity pick back up, with several new deals expected to be confirmed in the final quarter.
“As these houses are built, that will convert into revenue and should help the top line return to growth territory.
“House prices are on the rise, demand is outstripping supply, and build-cost inflation remains at manageable low single-digit levels, with the latter being helped by Vistry’s huge scale, allowing it to negotiate harder on building materials.
“All of this has given management the confidence to reiterate full-year guidance, which points to year-on-year profit growth.
“This looks achievable, and with its tilt towards affordable housing, Vistry looks better positioned than many of its peers to benefit from the government’s affordable housing scheme.”
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