Deputy Business Editor

Published 23rd Oct 2023, 08:44 GMT

The London-listed company said the need for affordable homes is continuing to boost that part of its business.

But earlier this year, the group revealed that it had seen a slowdown in private sales during the summer months due to higher mortgage borrowing costs and inflation squeezing household incomes.

“This trend has continued and we have not seen the seasonal increase in private sales since September that we had expected,” Vistry said in an update to investors.

Vistry has joined rival housebuilders in warning over weaker demand in the housing market as it prepares to shed around 200 jobs from the merger of two divisions. (Photo by PA)

Net debt is predicted to be higher for the full year, at around £450m, the group added.

The update comes after rival builders Bellway and Barratt Developments both warned over a slump in demand this month, having seen a drop in weekly reservations of new homes.

Last month, Vistry unveiled plans to merge its housebuilding division with its affordable homes business Partnerships, through which it works with local government authorities and housing associations to build lower-cost homes.

The restructuring is set to shave about £40m off its full-year adjusted pre-tax profit, from £450m to an expected £410m, it said.

Furthermore, it will make about 200 roles redundant as it cuts the number of regional offices.

But it expects to make about £25m in savings a year as a result of the merger, which it said will increase the building of “much-needed” affordable homes across the country.

Vistry says housing market slowdown persists and plans 200 job cuts