Vistry Housebuilding has reported its completions fell by 22% on a pro forma basis during the first half of 2023 as the business faced “more challenging market conditions”.
In its latest trading update released today, Vistry saw completions fall to 2,847 compared to 3,219 in 2022, numbers that factor in its acquisition of Countryside.
In a bid to mitigate the impact of spiralling mortgage rates and the challenging economic environment, Vistry entered several bulk transactions with housing associations and local authorities, while also taking a more considered approach to new starts following a slowdown in open market sales in recent weeks.
The trading update showed that the group’s weekly sales rate had grown slightly to 0.86 from 0.84 in 2022. However, when taking bulk sales out of the equation, the average sales rate drops to 0.67, a significant decrease from 0.82 in 2022.
Vistry’s housebuilding arm’s forward sales value reached £1.22billion for the half year, down from £1.34billion in 2022, while forward sales for the partnerships division increased substantially from £1.32billion to £2.97billion.
The group also saw a decline in adjusted turnover for the half year, which stood at £810million for 2023, down £902million for the same period the previous year.
Despite the negative trend in figures, Vistry said in the trading update that it remains on course to deliver its expected pre-tax profit of £450million.
Greg Fitzgerald, chief executive of Vistry, commented: “The group delivered a half-year performance in line with our expectations despite the challenging macro-economic conditions and higher interest rate environment.”
“Partnerships is demonstrating its resilience and remains on track to deliver revenue growth in the full year. Housebuilding is maintaining a controlled and disciplined approach, taking the opportunity to deliver bulk sales to support overall sales rates and open market pricing. I would like to thank our people, our subcontractors, suppliers and partners for their tremendous efforts and ongoing commitment to the success of Vistry Group.”
