Latest news with #Vistry
Daily Mail
2 days ago
- Business
- Daily Mail
Affordable housing plan boosts builders but Labour is still on track to miss election target of 1.5m homes
Shares in Britain's developers soared after Rachel Reeves put a £39billion affordable housing plan at the heart of her spending review. The Chancellor said it was the 'biggest cash injection in affordable and social housing in 50 years' but figures showed Labour is on track to miss its target of 1.5m homes by the next election. Just 39,170 homes won permission in England in the first three months of 2025, the lowest quarterly figure since records began, the Home Builders Federation said. Shares in Bovis owner Vistry, which specialises in affordable housing, rose 6 per cent. Crest Nicholson and Bellway gained 4.5 per cent and 2.6 per cent respectively. Persimmon was up 1.1 per cent, while Barratt Redrow, Taylor Wimpey and Berkeley Group rose 0.7 per cent. Alex Slater, at Rightmove, said the cash 'is a really positive boost'. But Emma Humphreys, at law firm Charles Russell Speechlys, said: 'Given the recent dip, there are serious concerns about an even tighter housing supply. 'Serious change is needed but it is unclear whether the spending will achieve that.'
Reuters
2 days ago
- Business
- Reuters
London stocks gain ahead of spending review, US data
June 11 (Reuters) - London's FTSE 100 edged up towards an all-time high on Wednesday, as investors awaited a domestic public spending review and crucial U.S. inflation data scheduled in the day. The benchmark FTSE 100 (.FTSE), opens new tab was up 0.1%, coming close to an intraday record high. The mid-cap FTSE 250 (.FTMC), opens new tab was up 0.4% as of 0913 GMT. All eyes on the day were on Finance Minister Rachel Reeves' speech, where she will divide up more than 2 trillion pounds ($2.7 trillion) of public spending aimed at stimulating the British economy. Homebuilders and household goods stocks (.FTNMX402020), opens new tab gained 2.8% to hit a more than seven month-high, with Vistry (VTYV.L), opens new tab up 9%, Crest Nicholson (CRST.L), opens new tab gaining 5.5% and Bellway (BWY.L), opens new tab advancing 3% ahead of the speech. Most sectors were higher in the market, though heavyweight energy shares (.FTNMX601010), opens new tab weighed down 0.6%. Investors also awaited a key U.S. inflation reading for any signs that President Donald Trump's erratic tariff policies had started to show their impact on the economy. Representatives from the U.S. and China late on Tuesday agreed on a framework to put their trade truce back on track and remove some export restrictions from both sides. The agreement, however, is pending approval from the countries' leaders. Any signs of the deal coming into effect will be taken in stride by markets that have been grappling with the uncertainty created by an ever-changing U.S. trade policy and its impact on global economic growth. Ibstock sank 12.8% to the bottom of the FTSE 250, after warning of a hit to its adjusted EBITDA outlook for 2025. Ricardo shares jumped 25% to their highest level since early January after Canada-based WSP Global ( opens new tab said it would acquire British environmental and engineering consulting firm for about 363.1 million pounds ($489.6 million) including debt. Quilter (QLT.L), opens new tab gained 5.6%, among the toppers on the FTSE 100, after UBS upgraded the wealth manager's stock to "buy" from "neutral".
Yahoo
2 days ago
- Business
- Yahoo
British homebuilder shares hit seven-month high ahead of spending review
LONDON (Reuters) -British homebuilder shares rose sharply on Wednesday, ahead a public spending announcement from the UK finance minister that is expected to confirm 39 billion pounds ($52.54 billion) of funding for affordable homes in the next decade. An index tracking British homebuilder shares was last up 2.36% at its highest since November, building on Tuesday's 5.4% gain. Vistry shares rose nearly 9%, and topped the broad European STOXX 600 share index. Peers Crest Nicholson and Bellway rose 5.2% and 2.5%. ($1 = 0.7422 pounds)
Reuters
2 days ago
- Business
- Reuters
British homebuilder shares hit seven-month high ahead of spending review
LONDON, June 11 (Reuters) - British homebuilder shares rose sharply on Wednesday, ahead a public spending announcement from the UK finance minister that is expected to confirm 39 billion pounds ($52.54 billion) of funding for affordable homes in the next decade. An index tracking British homebuilder shares (.TRINMX402020), opens new tab was last up 2.36% at its highest since November, building on Tuesday's 5.4% gain. Vistry (VTYV.L), opens new tab shares rose nearly 9%, and topped the broad European STOXX 600 share index. Peers Crest Nicholson (CRST.L), opens new tab and Bellway (BWY.L), opens new tab rose 5.2% and 2.5%. ($1 = 0.7422 pounds)
Business Mayor
14-05-2025
- Business
- Business Mayor
Home sales rise at Vistry Group on falling rates – but questions raised over social housing focus
Updated: 16:37 BST, 14 May 2025 Home sales have ticked up at Vistry Group in recent weeks, as expected interest rate cuts led to lower mortgage costs. However, an analyst has raised concerns that a lack of clarity on social housing funding from the Government may harm the firm, which builds many of its homes in partnership with organisations such as housing associations. The housebuilder, formed in 2020 from a merger of Bovis Homes and Linden Homes, said it had sold 0.91 homes per week at each of its developments since the start of 2025, and 1.32 in the last eight weeks. This is up from 0.59 in the period between January and 26 March, when the company was affected by a subdued volume of partner-funded transactions. This is where private sector developers build homes on behalf of other organisations, often social housing to be used by housing associations. Vistry noted partner-funded activity had remained at a 'relatively low level' because of 'investment constraints' while funding for new affordable homes waits to become available. However, the firm said sales to home buyers had improved as mortgage lenders have broadened their product ranges and slashed borrowing costs in anticipation of further expected cuts to the Bank of England base rate. Britain's central bank has reduced interest rates by 0.25 percentage points on four occasions since August 2024 in response to decreasing inflation, with the latest cut occurring last Thursday and taking the base rate to 4.25 per cent. Since then, most major banks have lowered their mortgage rates. Santander has announced the launch of multiple new mortgage deals with sub-4 per cent rates. Meanwhile, Barclays introduced the market's lowest five-year fixed rate deal for homebuyers purchasing with a 40 per cent deposit. Vistry forecasts both open market and partner-funded home volumes for 2025 to be at a 'similar level' to the prior year. An analyst has raised concerns that unclear government funding plans for social and affordable housing could negatively affect firms like Vistry, which focus on 'partner-funded' developments. Anthony Codling, managing director at RBC Capital Markets, said: 'Until the Government announces a significant funding program for social and affordable housing, Vistry may find itself in the wrong place at the wrong time whilst other housebuilders make hay in the warmest spring on record. 'The trading statement is trying to give the impression of 'everything is fine and there is nothing to see here.' 'But, the statement points to continued weakness in the partner-funded model, the market Vistry is focused on, whereas the market it isn't focused on, traditional housing, is doing well. 'Until the Government announce a significant funding program for social and affordable housing, Vistry may find itself in the wrong place at the wrong time whilst other housebuilders make hay in the warmest spring on record.' In late March, Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner unveiled an additional £2billion of cash towards building up to 18,000 new affordable homes. It said the properties would begin construction by March 2027 and be finished by the end of this Parliament in June 2029. Additional information on how the funding will be allocated is expected following next month's spending review. The Government has promised to deliver 1.5 million homes over five years, partly by allowing building on lower-quality' grey belt' land and mandatory housing targets for councils. Vistry Group shares were 0.9 per cent lower at 627.4p on late Wednesday afternoon, meaning their value has approximately halved in the past year. Easy investing and ready-made portfolios Free fund dealing and investment ideas Flat-fee investing from £4.99 per month Account and trading fee-free ETF investing Free share dealing and no account fee Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Compare the best investing account for you
