The FTSE 250 firm’s chief executive Greg Fitzgerald gave the update as Vistry said it is on track to meet adjusted pre-tax profit expectations of £418 million for 2022, up 21% from a year earlier.
Traditional housebuilders are grappling with a number of headwinds that could impact sales, including a sharp rise in mortgage costs. Last year political uncertainty also knocked sentiment.
Vistry is not immune to the challenges, with forward sales of private homes at £1 billion at the end of 2022, down from £1.3 billion.
But the group last year completed a £1.1 billion acquisition of Countryside Partnerships, which significantly increased its affordable homes division. It has seen a “sustained level of demand” from housing associations, local authorities and the private rental sector that want to work with Vistry.
Fitzgerald said: “The combination with Countryside Partnerships in November provided a transformative opportunity for the group to accelerate its strategy of rapidly growing its high return, less cyclical revenues, and has firmly positioned Vistry as a leading provider of affordable homes.”
He added: “The group’s forward sales position totals an encouraging £4.6 billion and we have a strong pipeline of new opportunities within partnerships. It is too early in the current year to predict the outturn for private sales, however I remain cautiously optimistic that buyer sentiment will improve over the coming months.”
The group is working on a number of sites in London that have a target gross development value of around £700 million for 2024.
The shares improved 6p to 753p.