In a trading statement ahead of reporting interim results Vistry this morning reported strong demand fueling price increases of 5% to 8% on private homes.

Greg Fitzgerald, chief executive, said that price increases continued to offset cost increases in the period.

He said: “Overall, we continue to expect to see build cost inflation for 2022 in the region of 6%.

“Our focused commercial controls and strong client relationships have enabled us to effectively manage input-cost pressures in respect of our pre sold volume.”

House building completions increased to 3,219 (H1 21: 3,126) units with the full-year adjusted gross margin now expected to be ahead of Vistry’s 23% target.

Vistry’s sales position has further strengthened with House building and Partnerships divisions forward sales up 16% at £2.1bn on prior year.

Fitzgerald added: “The group has delivered an excellent first half performance, significantly exceeding our expectations at the start of the year.

“Demand has been strong across all areas of the business and our forward sales positions further strengthened.

“The business is in great shape and well-positioned to maximise the broader market opportunities.”

Over the first half, Vistry enjoyed strong cash generation with the year-on-year net cash up to £115m from £31.6m a year ago.

Month-end average net debt for the rolling 12 months significantly improved to £73m from £239m a year ago.

He added: “While mindful of the wider economic uncertainties, we are positive on the outlook for the group and expect to see significant margin progression in the full year.”