Vistry (LON: VTY) has announced plans to continue shareholder payouts from next year.
Thanks to strong demand and sales, the housebuilder is on track to meet full-year profit at the top end of the £130m-£140m range.
The group has achieved a private sales rate of 0.67 per outlet per week, which is up from 0.58 a year ago.
Vistry chief executive Greg Fitzgerald said: ““Demand for our new homes has remained strong and we are on track to deliver profit for 2020 at the top end of our expectations.
“We are well positioned for 2021 with a record forward sales position and assuming stable market conditions, expect to see a step-up in completions delivering group profits of £310m.
“Our priority is reducing the group’s leverage while delivering on our medium-term targets.
“Cash generation has been strong, and we now expect our 2020 year-end net debt to be significantly lower than our previous expectations.
“Given this robust business performance and outlook, the board is pleased to confirm its intention to resume dividends in 2021 including an interim dividend next November, earlier than previously anticipated.”
In October, house prices jumped 7.5% according to data from Halifax. The average property now costs £250,457. House prices in the UK have increased at their fasted rate since 2016 amid the demand for more space and the stamp duty holiday.