Vistry Group PLC (LSE:VTY), the housebuilder, saw its shares rise 15% to 308p on Tuesday after it secured the largest possible direct grant award under the first allocation of the government's £39 billion Social and Affordable Homes Programme.
The stock hit an intraday high of 308 pence, up from Monday's close of 268.60 pence, after opening at 282 pence.
Vistry said the £350 million award would fund the delivery of more than 3,000 affordable homes, exceeding the £83 million it received at the start of the previous programme in 2021.
Under that earlier scheme, running from 2021 to 2026, Vistry received total funding of £278 million as a Strategic Partner, enabling over 3,500 additional affordable homes.
The company has been reconfirmed as a Strategic Partner to Homes England, the government's housing and regeneration agency, extending a relationship with successive affordable homes programmes spanning nearly two decades.
Vistry said it had identified immediate opportunities to deploy the grant this year, working alongside 29 of the 32 other strategic partners named in the wider £9.58 billion allocation announced on Tuesday.
Chief executive Adam Daniels said the award reflected the company's track record and would provide "a much-needed stimulus" for the housebuilding sector.
Homes England's broader funding round is intended to support the creation of more than 73,000 new homes across England.
