House builder Vistry said it has held “productive discussions” with subcontractors over plans for 10% pay cuts on contracts.

Vistry first floated the idea with subbies last month and has started holding meeting with suppliers in the last few weeks.

In a trading update to the city today it said: “We appreciate the productive discussions we have had in recent weeks with our key supply chain partners to agree cost reductions for all our existing and future contracts.

“With a high level of visibility on forward sales, build programmes and revenues in the Partnerships model, we can offer greater continuity of work to our suppliers and, working with them, can increase the overall rate of delivery on our sites and supply of much needed affordable mixed tenure homes.”

Vistry also confirmed a further 200 job cuts as part of its strategy switch away from falling private market sales to become a partnerships-only housing business.

The group said it is targeting adjusted profit before tax of £450m this year.