Britain's Vistry to focus solely on building affordable homes

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Shares jump about 11% to a more than one-year high.

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Published by

11 Sep 2023

British homebuilder Vistry said on Monday it will shift its entire focus onto its affordable homes business as a slowdown in the country's broader housing sector intensifies.

Shares in the builder rose about 11% to a more than one-year high of 893 pence in early trade.

British housebuilders are increasingly feeling the pinch from the Bank of England's 14 consecutive interest rate hikes, which have hit profit margins and demand as buyers cope with elevated mortgage costs and affordability concerns.

Industry gauges, from mortgage approvals to house prices, have fallen in recent months. Mortgage lender Halifax last week reported a 4.6% annual drop in house prices, the fastest pace since 2009.

Vistry has been working with local government authorities and housing associations to build affordable homes and this Partnerships division has outperformed its Housebuilding unit, which operates on similar lines to rival builders.

«The scale of the social need for affordable mixed tenure housing across the