Vistry Group PLC (LSE:VTY) reported an improvement in its sales rate, rising to 0.91 per outlet per week from the 0.59 announced in March, with the last eight weeks averaging 1.32.
In a statement ahead of its annual shareholder meeting, the housebuilder said it continues to expect a year-on-year profit increase in 2025, with performance more heavily weighted to the second half of the year.
It expects low single-digit build cost inflation this year, as some upward pressure on material and labour costs are being experienced but are being managed through engagement with suppliers.
Improving cash generation and reducing average net borrowing are priorities, with refinancing of its existing facilities expected to be completed by summer.
Vistry said its forward order book currently stands at £4.6 billion, with £2.1 billion set for delivery in 2025, and 72% of forecast full-year units secured.
Stronger sales on the open market have been supported by improved mortgage availability and affordability, while Vistry said the UK government’s additional £2 billion of 'top-up' affordable housing funding has "provided positive impetus to the sector".
With the group expecting greater clarity on this funding following the June spending review, it has been working with a range of partners to identify the best opportunities to secure funding.
Demand from private rented sector (PRS) companies are also increasing, the FTSE 250 group said, with positive momentum seen from investment funds.
Partner-funded transaction volumes are expected to remain stable this year, with strong momentum projected for FY26.