Housebuilder Vistry Group PLC (LSE:VTY) announced plans to increase home construction in 2024, buoyed by a resilient demand for affordable homes, particularly from the private rented sector.
This optimism comes after the company's 2023 profits surpassed market expectations. Despite a challenging year marked by subdued demand and economic uncertainties, early signs of stability in the housing market have emerged in 2024, partly due to easing mortgage rates.
Vistry anticipates this trend will bolster open market demand throughout the year. Following a successful £55 million share buyback programme initiated in December, Vistry is set to launch another buyback worth £100 million in April.
With a target to construct over 17,500 units in 2024, up from 16,118 homes last year, Vistry is outperforming the market, contrasting with its competitor Persimmon, which reported a significant profit decline and anticipates continued market challenges.
Vistry's adjusted profit grew by 47% to £311.8 million, while the buyback is being made in lieu of a final dividend.