Vistry Group PLC (LSE:VTY) saw its shares rise 2.2% after providing a mixed half-year update but keeping full-year guidance intact.
Housebuilders in general rose on Thursday, extending gains from the previous day when improved inflation figures raised hopes that interest rates would stop rising soon and provide relief for the housing market, with mortgage rates showing a first fall in six weeks today.
FTSE 250-listed Vistry's Partnerships arm proved resilient in the first half, while its housebuilding compensated for some slowing in private sales with more bulk sales.
Following the recent increases in interest rates from the Bank of England and mortgage costs, the company reported a slowdown in the open market private sales rate over the past four weeks.
Despite this, directors were confident about holding guidance for the full year.
The market "should find this very encouraging as estimates have been falling across housebuilders", said Liberum analyst Charlie Campbell.
Around the sector, Persimmon climbed another 4.5%, Barratt Developments 3.3%, Redrow rose 3.6%, Crest Nicholson 3.3%, Berkeley and Taylor Wimpey both added another 2%.
After the softening of inflation led to a revising down of peak BoE interest rates and a subsequent drop in gilt yields, Danni Hewson, head of financial analysis at AJ Bell said housebuilders were gaining as a result, with the sector having been heavily sold off due to fears a sharp rise in interest rates would destabilise the housing market.
"While that’s certainly in motion, with plenty of people struggling with higher mortgage rates and a slowdown in property transactions, the valuations of housebuilders were effectively pricing in a deep rut."
The inflation news "has spurred investors with an appetite for risk to go fishing for bargains in the space in the hope that property market won’t experience a severe collapse".