‘Unburdened’ for-profits have ‘more appetite’ for partnership deals, says Vistry boss

Vistry anticipates for-profit registered providers to be a growing part of its customer base for its partnerships-led model going forward as they have fewer financial burdens than some traditonal housing associations.

The £3.56bn housebuilder posted a trading update earlier this week, revealing it expected to hit 18,000 home completions in 2024 as it reaped the benefit of a strategic pivot. 

Vistry’s strategy in recent months has shifted towards large forward sale agreements with investors – in which it signs deals to pre-sell homes in schemes. 

Stephen Teagle, chief executive of partnerships and regeneration for Vistry Group, told Housing Today that he expected for-profit RPs to provide future growth in this area. 

“We definitely see for-profits who do not have the burdens on their balance sheets that some of the traditional RPs have, really stepping up and wanting to participate in delivery, so we are working with a number of for-profit RPs on schemes at the moment,” he said. 

“We see more appetite coming from the for-profits going forward”.

The comments came as Syreeta Robinson-Gayle, head of affordable housing at Barratt London, reportedly told the London Assembly that there is a ”lack of capacity from registered providers to take the number of affordable homes that are currently in [the] planning [process].” 

Asked whether there was a “ceiling to growth” to Vistry’s new strategy, Teagle said it existed only “in terms of our capacity to deliver in terms of supply chain and people”.  

“If we have renewed investment in affordable supply and we have a positive economic environment that is encouraging investment in PRS, then the constraint is around the skills within the industry and the workforce going forward,” he said. 

>>See also: Vistry ‘confident’ it will hit 18,000 completions in 2024

>>See also: ‘I’m extremely demanding’: Greg Fitzgerald on delivering the Vistry growth plan

“The 20,000 homes a year, which is seen as a limit for housebuilding business, we think is a glass ceiling for us. We don’t see that as a real barrier.” 

Addressing the new government, Teagle spoke positively about the “clear presumption in favour of development to deliver homes” demonstrated by the Labour leadership.  

“That’s fantastic to see a government that’s recognizing we’ve got a housing crisis and we’ve got to do something about it, that’s fantastic,” he said.  

“The thing which is really quite unique, in my experience, is that we have the first housing policy commitment coming from the chancellor, not the housing minister. 

“This is the chancellor who’s responsible for the Treasury standing up and committing to placing housing supply as a fundamental tenant of their commitment to grow the economy. That’s absolutely unique in my experience and really positive.” 

Teagle said he wanted to see Labour’s Autumn Statement commit to a 10-year rent settlement for housing associations and a five-year funding commitment to local authorities to allow them to plan for the future and improved borrowing capacity for local authorities. 

“The second thing I’d like to see is an absolute commitment through Holmes, England to deliver a focused regeneration investment program,” he said, arguing for the creation of a single regeneration budget.