Vistry Secures £350m Homes England Boost for Affordable Housing Delivery

Vistry has secured £350 million in government grant funding to accelerate the delivery of social and affordable housing across England outside London.

The housebuilder has been named among 33 strategic partners selected by Homes England to support the Government’s new £39 billion Social and Affordable Homes Programme (SAHP), which will provide long-term funding for housing delivery over the next decade.

The agreement represents a significant funding boost for Vistry’s partnerships-led housing model and will support the delivery of new affordable homes alongside councils, housing associations and other registered providers.

Vistry is one of relatively few private-sector housebuilders included among the strategic partners, with the majority of organisations selected for the programme comprising housing associations and local authorities.

Collectively, the partnerships announced by Homes England are expected to support the creation of more than 73,000 new homes, providing greater long-term certainty for the affordable housing development pipeline.

Vistry has worked with Homes England through successive affordable housing programmes for almost two decades and has established relationships with 29 of the other 32 strategic partners announced alongside the company.

Adam Daniels, Chief Executive of Vistry, said: “Vistry has received direct grant funding awards under successive affordable homes programmes for nearly twenty years, and this award reflects our established track record and commitment to delivering much needed affordable homes in collaboration with Homes England and our partner providers.

“We are delighted that Homes England has made this significant announcement that will create over 73,000 new homes and provide Vistry, its partners and the wider sector with a much-needed stimulus.

“We already operate in all of the Established Mayoral Strategic Authorities and have established relationships with 29 of the 32 other strategic partners announced this morning. We look forward to continuing to work with Councils and Homes England to meet local ambitions to increase housing supply at pace.”

The £350 million allocation comes at an important point for Vistry as the group continues to focus its business around partnership-led residential development and affordable housing.

The company has recently warned that it expects to report a first-half pre-tax loss of around £30 million following a series of measures designed to strengthen cash generation and reset its balance sheet.

Average daily net debt has approached £800 million, while around £50 million of charges are expected from measures including increased sales discounts, accelerated asset disposals and write-downs on lower-margin developments. Vistry has also prioritised faster payments to suppliers as part of the financial reset.

Against this backdrop, the new Homes England funding provides greater visibility for Vistry and its partners over future affordable housing delivery.

With £350 million allocated through the ten-year programme, the agreement gives Vistry a significant platform to work with local authorities and housing providers on new residential developments, supporting the Government’s wider ambition to increase the supply of social and affordable homes across the country.