Vistry: Mortgage rates buoy housebuilder as profits top expectations
Housebuilder Vistry said it was “optimistic” on recent cuts to mortgage rates today as it revealed it topped profits expectations last year.
In a trading update this morning, the FTSE 250 housebuilder said pre-tax profits for 2023 were ahead of its previous guidance and in line with last year at £418m.
The group also slashed its dept pile to £90m, well down from the 30th June position of £328.7m.
Britain’s housebuilders have been rocked by a slowdown in the market over the past year as rising interest rates cool activity across the market and price out first time buyers.
However, lenders have moved rapidly to slash mortgage rates. in recent days ahead of expected cuts to interest rates by the Bank of England this year.
More than 30 British lenders have slashed their home loan rates in the last two weeks as 2024 kicks off with a mortgage price war.
Barclays, Santander, Virgin Money and Co-op Bank this week joined HSBC, Halifax and Natwest as high street banks offering new deals on their mortgage products. Barclays cut its two-year fixed deal by up to 0.5 per cent.
In a statement this morning, Vestry boss Greg Fizgerald said: “The easing of mortgage rates in recent weeks is encouraging and we are optimistic that this will help stimulate demand in 2024.”
He added that the firm would be further buoyed by the “country’s housing crisis” which will be “at the top of the political agenda over the coming months”.
“Government will need to allocate more funding towards housing,” he said. “As the leading Partnerships business with strong growth ambitions, Vistry is extremely well positioned to play its part in increasing the delivery of much needed affordable homes across the country.”
Shares in Vistry have climbed over 30 per cent in the past year.