Vistry set to unseat Barratt as country’s biggest housebuilder

Vistry Group has said it is on course to build 18,000 homes this year – which would almost certainly make it Britain’s largest housebuilder.

The group, in its half-year results for the year to 30 June, said it completed 7,792 homes, up 9.1% on last year’s figure of 7,143.

It said it is “on track” to build 18,000 homes in the full-year, which looks set to exceed the amount likely to be delivered by  Britain’s current largest housebuilder Barratt, even after its merger with Redrow. Barratt yesterday said it is likely to build 13,000 to 13,500 in its current year, while Redrow completed 1,894 homes in its half-year.

Vistry increased its pre-tax profit for the half year 7% from £174m to £186m, while its turnover increased 9.1% to £7.8bn.

The group said the increase in completions for the half-year was “driven by good demand” in its partner-funded markets.

Vistry has pivoted in the last couple of years towards a partnerships housing model. It requires at least 50% of units on every site to be pre-purchased by partners, such as housing associations.

More than three in four completions (76%) in the half-year were partner-funded.

Conversely, open market completions fell to just 24% of Vistry’s total in the half-year, down from 33% in the same period last year. It said that it expects this figure to increase to 35% as open market demand recovers.

Greg Fitzgerald, chief executive of Vistry said: “The group has delivered a strong half year performance with Vistry’s Partnerships model significantly outperforming the traditional housebuilding market.

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

>>See also: Top 50 Housebuilders

“The group’s growth strategy and greater delivery of affordable housing is well aligned to the new government’s ambitions to address the country’s housing crisis, and uniquely position Vistry to play a key role in delivering the government’s new housing targets.”

Vistry said it entered into new agreements with 45 partners in the half-year, including agreements with housing associations including Places for People, LiveWest, BHPA, Sovereign Network Group and Together, and PRS operators such as Sigma and Lloyds Banking Group-owned Citra.

In May, Vistry forward sold 1,750 homes to PRS provider Leaf Living in a deal with a development value of £580m.

The group’s forward order book as of 30 June increased 15% to £5.1bn, which it said was primarily driven by the increase in deals secured with partners.

Vistry said its fire safety provision for the half-year totalled £280.7m, and said remediation work will be phased “relatively evenly” over the next three to four years.