Listed housebuilder Vistry to re-open ‘majority’ of sites

Listed housebuilder Vistry is to restart work on the majority of its housing sites from the start of next week, the firm said in an update to the City this morning.

The £1.1bn turnover firm, born out of the merger at the start of the year of Galliford Try’s housing business with Bovis Homes, said on March 25 it was shutting down sites in the wake of the government’s “lockdown” announcement.

The announcement is the latest sign of life returning to residential development, and comes as the UK’s third largest builder, Taylor Wimpey, said it too was restarting work on site, albeit a week later.

Chief executive Greg Fitzgerald (pictured, right) said: “This first step represents a positive move for the Group, as well as the wider economy, and the critically important delivery of new homes.”

The firm said it will recommence work on around 90% of its partnerships housing sites, where it builds homes for local authorities and housing associations, as well as a “significant number” of private sale sites.

Despite lockdown measures which have seen government guidance precluding house moves in most circumstances, Vistry said it had taken 212 reservations for new homes since lockdown, exchanged on 170 homes and legally completed 193 private sales. It has also seen 80 sale cancellations, it said.

The firm said it was re-opening sites “in accordance with strict guidance and protocol from the Government, Public Heath England and the HSE” and following “close dialogue with our supply chain partners who are supportive of our plans.”

A number of housebuilders have reported difficulty in getting materials to sites even where sites have remained open.

Vistry said it had furloughed “the majority” of its staff, but that the proportion would reduce as work re-started. Directors have taken a 20% pay cut, effective from April 1.

Last week Housing Today reported that nearly three quarters of housing sites had shut due to coronavirus lockdown measures, and yesterday the government’s chief medical officer Prof Chris Whitty said social distancing would need to remain in place until at least the end of the year. However, the government has continued to insist that construction sites should remain open, despite there being no sign of the imminent lifting of social distancing measures.

Yesterday Unite Group said it was re-opening three development sites for schemes originally due to complete in time for the autumn term, while on Tuesday brickmaker Michelmersh said it was beginning the “orderly and safe recommencement of production across all its plants.”

The move was described by Cenkos analyst Kevin Cammack as “light at the end of the tunnel” for the housebuilding sector, implying that a May return to site working was feasible.”

Vistry said the restart of work on “partnerships” sites was possible due to “the high level of contracted forward sales within this business [which] provides certainty of the cash realisation from these sites.”

In contrast work on private sale sites will initially focus on homes nearest completion, the builder said. “Our initial focus will be on homes which are watertight and where we have clear visibility of completion and hence cash realisation. Activity levels will commence in a measured way, increasing steadily, and maintaining a tight control on work in progress.”

Greg Fitzgerald said a “huge amount of work” had gone in to ensuring that work on site to be carried out safely. He said: “I would like to thank all our colleagues and subcontractors for their remarkable resilience and commitment during these times and am pleased to announce that we will be recommencing activity levels across the majority of our developments on Monday 27th.