Vistry and Sigma extend partnership to construct 5,000 new homes for tenants

Housebuilder Vistry has entered into an agreement with build-to-rent group Sigma Capital Group to build 5,000 new homes. 

The homes will be built across a number of UK regions over the next five years, though Vistry decline to reveal the locations of the sites. 

The projects will sit under Sigma’s Simple Life brand and construction will run via Vistry’s Countryside Partnerships unit.

Building homes on brownfield land will be ‘turbocharged’ under a major shake-up to planning rules to boost housebuilding while protecting the Green Belt, the government announced this week.  

Housing Secretary Michael Gove said this week: ‘Our new brownfield presumption will tackle under delivery in our key towns and cities – where new homes are most needed to support jobs and drive growth.’

Official figures published on Wednesday showed private rental prices paid by tenants in the UK rose by 6.2 per cent in the 12 months to January, unchanged for the second consecutive month. 

Annual private rental prices rose by 6.1 per cent in England, 7 per cent in Wales and 6.8 per cent in Scotland in the period, the Office for National Statistics said. 

Within England, London had the highest annual percentage change in private rental prices in the year, at 6.9 per cent, while the North East saw the lowest, at 4.7 per cent. 

Following today’s update, Vistry shares rose 1.79 per cent or 17.00p to 966.50p on Wednesday, having risen over 26 per cent in the last year. 

Vistry has built over 8,500 homes of the same model announced on today in partnership with Sigma, which focuses on single family housing, at a cost of £2.25billion. 

Greg Fitzgerald, chief executive of Vistry, said: ‘This framework agreement with Sigma is another great example of how our Partnerships model can deliver at scale the mix of housing tenures that residents across the UK desperately need. 

Plans: Building homes on brownfield land will be ‘turbocharged’, Michael Gove said this week

‘High-quality build-to-rent homes continue to be an important offering for our mixed-tenure communities, and we are thrilled to be continuing our long-term partnership with Sigma.’

Graham Barnet, chief executive and founder, Sigma, added: ‘We currently have over 3,500 additional homes under construction across the UK and with a track record of 98 per cent let or reserved at any given time, and above industry standard build-to-rent (BTR) customer review scores, we’re looking forward to delivering many more much needed BTR family housing over the next five years with our partner Vistry.’

In January, Land and property group Henry Boot struck a deal to sell 759 residential housing plots in Swindon to Vistry for an undisclosed fee. 

The site in South Marston was secured by Henry Boot’s land and planning business, Hallam Land Management, via an option to purchase the land over 20 years ago. Henry Boot claimed 500 ‘affordable homes’ would be built on the plot.

In October, Vistry slashed its full-year earnings expectations and cut 200 jobs. It made £40million less profit than previously thought after a downturn in demand.