Vistry has announced plans to scale down the business after reporting half-year losses.
The Group will reduce operating regions from 25 to 12, which it says will allow it to focus on its highest performing areas and operate more cost effectively. This will see a greater focus on regions where its mixed-tenure model performs best, notably the North, Midlands and the West. The statement said that South East operations will switch to a “fully pre-sold model to eliminate open market exposure”, with schemes being delivered through joint ventures expected to continue to sell into the open market while the sites complete.
Vistry’s new strategy will target a tenure mix of approximately 60% partner funded and 40% open market, after initially announcing a target of 65% partner funded homes back in 2023.
The Group also said that it will transition to a smaller, more focused business targeting approximately 12,000 completions per annum over the medium term.
As part of the plans, Vistry will reduce its land bank from 51,000 to 36,000 plots, and implement a more selective approach to new land acquisition to increase discipline around capital allocation.
For the half year to 30 June 2026, Vistry reported an adjusted pre-tax loss of £83.3million, down from £80.6million profit in H1 2025. The Group says that this reflects both the discounting of open market stock to generate cash, and approximately £50million in relation to the early impacts of the CEO review process.
The housebuilder’s reported loss before tax was £661.3million down from £40.9million profit the previous year, which reflects exceptional items including a £475million impairment of goodwill and an additional £73.2million building safety provision.
Vistry’s completions fell 8% year-on-year, recording 6,304 in H1 2026 compared to 6,889 in H1 2025, which the Group says is a result of a lower level of partner demand in the first half of the year.
Adam Daniels, Chief Executive of Vistry, commented: “Since taking over as Chief Executive in April, we have made substantial progress in re-focusing the business, and delivering on our immediate priority to improve cash generation. In parallel, we have now completed an extensive review of our business and operating model, including how best to position the Group for future success.”
“The review confirms that Vistry has strong fundamentals: a differentiated mixed-tenure model, deep partner relationships, a quality product, exposure to structurally attractive affordable and partner-backed housing markets and highly motivated people. Whilst the challenges we have experienced in the last couple of years have been exacerbated by market headwinds, the review has also made clear that our execution, regional discipline and capital allocation have not been consistent enough.”
“These issues can be fixed, and we are taking the necessary steps to ensure the strong performance we have seen across many of our sites is replicated across the Group as a whole. Achieving this has necessitated an urgent focus on increasing operational control, releasing cash, reducing complexity and establishing a base from which we can deliver more consistently. We are committed to entering 2027 on the right footing and, following the actions taken, do not anticipate any need to raise equity.”
“We are repositioning Vistry as a specialist mixed-tenure housebuilder that will deliver consistent, cash-backed growth in earnings alongside highly attractive returns on capital. To achieve this, the Group will need to be smaller, more focused geographically and with increased discipline and control in operational delivery and allocation of capital. Managed realisation of value from our asset base will support further de-leveraging, ensuring the Group has a robust platform from which to operate. I am confident Vistry will continue to be the UK’s leading specialist mixed-tenure housebuilder, delivering high-quality open market, affordable and private rented sector homes where they are needed most.”
