SHARES in housebuilder Vistry yesterday sunk almost six per cent after the housebuilder said it will cut 200 jobs and make £40m less profit than expected as part of its shift into being a solely affordable housebuilder.

Last month the London-listed firm said it would focus solely on building affordable homes via its partnerships business after a volatile housing market eroded demand for building in the private sector.

According to the group, the number of affordable homes built by Vistry grew to 1,503 in October, up from 1,482 the prior month. However, the number of new private properties built by the group was subdued at 1,298, up slightly from 1,295 in September.

The owner of Countryside Partnerships, Bovis and Linden Homes, blamed a slowdown in open market private sales during the summer months due to the higher interest rate and inflationary cost pressures.

The group cut its profit expectations for the full year to £410m, down from previous forecasts of £450m.

(c) 2023 City A.M., source Newspaper