Vistry Group PLC (LSE:VTY) is positioned to benefit from recent Government measures that improve funding visibility for Affordable Housing, that's according to stockbroker Panmure Liberum.
The broker, in a note, highlighted 'new clarity' from the UK's Ministry of Housing, Communities and Local Government on rent-setting. Social and affordable rents that sit below benchmark levels can now be raised by £100 per week initially and by £200 per week from April 2028. This sits alongside the CPI plus one per cent annual increase already in place.
Panmure Liberum also points to progress on the next Affordable Homes Programme. Annual funding is set to rise to £3.9 billion, from £2.3 billion. A large share of this allocation is expected by the summer. The broker believes these changes could lift social housing new build volumes by more than 50%.
Further support comes from a proposed £2.5 billion Government loan facility for Housing Associations. The interest rate will be 0.1% per annum. Panmure Liberum describes this as effectively free funding. It estimates the facility could deliver around 15,400 dwellings, assuming an average build cost of £162,000 per plot based on Persimmon data. Current annual affordable housing delivery stands at around 63,000 units.
Private sector funding is also increasing. Lloyds Bank has restructured its specialist lending arm and recently renewed a £120 million facility while adding £75 million of new finance for Orbit. Santander plans to increase lending to Housing Associations by 50% in 2026, equating to an additional £1 billion.
Within this context, Panmure Liberum said: “We view the growing funding news flow as structurally positive for Affordable Housing (generally) and Vistry (specifically).”
The broker rates the shares a buy and sees Vistry as a clear beneficiary due to its Strategic Partner-Plus status with Homes England.