As housebuilder Vistry Group PLC (LSE:VTY) prepares to provide a third-quarter update shares in the sector have been on another downward swing, following gloomy reports from peers in the past week.
Ahead of the trading statement on Monday 23 October from the owner of Countryside Partnerships, Bovis and Linden Homes, a release from rival Bellway revealed weaker demand and cost inflation squeezing profit margins, with Barratt later confirming the trading environment remains difficult, with potential homebuyers still facing mortgage challenges.
Amid the worst housing slump in 14 years, Barratt and Bellway's private sales rates continued to remain weak in recent weeks, with some sequential improvement since the end of August, noted UBS, expecting Vistry to report similar numbers.
Analysts at the Swiss bank said they think the "key focus" for Vistry will be the full-year outlook rather than recent trading.
For the year to March, the company has given guidance for a £450 million profit before tax and exceptional items.
Last month, Vistry announced a strategic shift, which commentators said gives the group a point of difference from other housebuilders and will free up cash for shareholder returns.
But UBS was cautious, seeing the new business plan as wildly optimistic.