Housebuilder Vistry warns of losses amid heavy discounting on unsold homes
Summary
Vistry Group, a major housebuilder in the UK, expects to lose £30 million before tax in the first half of 2024 due to heavy discounting of unsold homes. The company has reduced its unsold home inventory but faces weaker market conditions and rising mortgage costs linked to economic uncertainty and global events.Key Facts
- Vistry Group is one of Britain’s largest housebuilders and was formerly known as Bovis.
- The company predicted a £30 million loss before tax between January and June 2024.
- It cut prices by an average of 7.1% to sell homes, compared to 1.4% last year.
- Unsold private homes decreased from £600 million to less than £300 million.
- Market challenges include higher mortgage rates and lower buyer confidence due to the Middle East war and economic concerns.
- Vistry plans to reduce annual costs by £25 million by offering voluntary redundancies and cutting hiring.
- The finance director, Tim Lawlor, will leave the company in October.
- Vistry is involved in building social housing and is waiting on government grants tied to a £39 billion affordable housing program.
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