Vistry sales improve – should you buy into the boom?
Housebuilder Vistry’s unusual business model has fuelled rapid sales growth amid a sluggish private sales market


Most people in the UK agree that something needs to be done to improve access to housing. With house prices so high that people have to save well into their thirties to get on to the property ladder, some experts estimate that as many as three million homes will need to be built to achieve other countries’ levels of affordability.
The new government has made clear that building more houses will be a priority, with the chancellor outlining major changes to the planning rules, along with a national building target for 1.5 million homes a year for at least the next five years.
Is Vistry a worthwhile investment?
All this is good news for house builders such as Vistry (LSE: VTY). While many firms in the sector have been accused of hoarding land without building on it, Vistry has steadily been moving to a “partnerships” business model. In the past, developers would design a project, get approval and then build the houses, before trying to sell them.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
While this enables the builder to reap the rewards of the investment, it can take a long time, and involves putting a lot of money upfront. By contrast, Vistry gets housing associations and local authorities both to commit to projects before building work starts, and to put up much of the cost.
Such a strategy is not without its drawbacks. It means that Vistry gets less for each house or block of flats that it sells than if it sold them in the usual way. However, it comes with several key benefits. First, getting the buyers to put money down in advance means that Vistry doesn’t have to tie up large amounts of working capital, and the money can instead be invested in other projects. It also makes securing planning approval much easier, as the group can show that its partners are committed to the project.
This has enabled Vistry to grow at an explosive rate, with revenue tripling between 2018 and 2023. This isn’t just a flash in the pan. Vistry has a huge, £5.2 billion backlog of projects in the pipeline, which should keep growing now that the new government sees house building as a priority. Earnings per share have been more variable, but they are now rising consistently.
Despite this, Vistry is still attractively valued, trading at only 12.5 times 2025 earnings and yielding 4.4%. The company has also done well enough to launch a £100 million share-buyback programme, which is due to end in September.
Vistry’s shares have plenty of momentum. According to investment platform AJ Bell, Vistry was one of the best-performing stocks in the FTSE 100 in the first six months of 2024. It has doubled since October, and is still trading above its 50-day and 200-day moving averages. I suggest going long at the current price of 1,317p at £1.50 a share. Put the stop-loss at 717p, which gives you a total downside of £900.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Trump tariffs challenged by US court
The legal basis underpinning Trump’s tariffs has been deemed unlawful by the US Court of International Trade. How have markets responded?
-
Nationwide launches 5% savings account – who is eligible?
Nationwide’s new fixed rate savings account leads the market in terms of interest rates for 18-month fixed rate bonds. Are you eligible?
-
Investment opportunities in the world of Coca-Cola
There is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
-
Streaming services are the new magic money tree for investors – but for how long?
Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
-
'Pension funds shouldn't be pushed into private equity sector'
Opinion The private-equity party is over, so don't push pension funds into the sector, says Merryn Somerset Webb.
-
Greg Abel: Warren Buffett’s heir takes the throne
Greg Abel is considered a safe pair of hands as he takes centre stage at Berkshire Hathaway. But he arrives after one of the hardest acts to follow in investment history, Warren Buffett. Can he thrive?
-
Who will be the next Warren Buffett?
Opinion There won’t be another Warren Buffett. Times have changed, and the opportunities are no longer there, says Matthew Lynn.
-
Will Comstock crash – or soar?
Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.
-
'As AGMs go digital, firms must offer a new form of scrutiny for shareholders'
Opinion Technology has rendered big AGM meet-ups obsolete, but the board still needs to be held to account, says Matthew Lynn
-
Unilever braces for inflation amid tariff uncertainty – what does it mean for investors?
Consumer-goods giant Unilever has made steady progress simplifying its operations. Will tariffs now cause turbulence?