Vistry is the laggard in a housebuilding sector full of cracks | Nils Pratley
News Source
β’Thu, 24 Sep 2026 16:19:38 GMT
π° What Happened
UK housebuilder Vistry has cut its building goal from more than 20,000 homes a year to 12,000. New chief executive Adam Daniels announced the change in a review of what went wrong.
The share price has fallen to 262p, down from almost Β£14 in 2024. Vistry also admits it may have paid too much for land it bought in recent years. Some of those plots may never be built on.
Vistry says the partnership idea of selling homes to councils and housing associations was not silly, but the work was done badly, especially in southern England.
π The Backstory
Vistry was formed from the Bovis, Linden and Countryside brands. It won favour with the Labour government by building affordable mixed-tenure homes with councils and landlords.
Former executive chair Greg Fitzgerald left in May after several profit warnings. A greater share of new homes will now be built in northern England. Cheaper land is part of the plan.
The good news for shareholders is that Vistry does not need to raise fresh money. Its target for return on capital has been cut from 40 percent to 30 percent, and only by 2031.
π― Why It Matters
The government wants 1.5 million new homes built in England during this parliament, and the housing secretary now calls it a stretch target. If big builders keep shrinking, that goal will be missed by a wide margin.
UK housebuilder Vistry has cut its building goal from more than 20,000 homes a year to 12,000. New chief executive Adam Daniels announced the change in a review of what went wrong.
The share price has fallen to 262p, down from almost Β£14 in 2024. Vistry also admits it may have paid too much for land it bought in recent years. Some of those plots may never be built on.
Vistry says the partnership idea of selling homes to councils and housing associations was not silly, but the work was done badly, especially in southern England.
Vistry was formed from the Bovis, Linden and Countryside brands. It won favour with the Labour government by building affordable mixed-tenure homes with councils and landlords.
Former executive chair Greg Fitzgerald left in May after several profit warnings. A greater share of new homes will now be built in northern England. Cheaper land is part of the plan.
The good news for shareholders is that Vistry does not need to raise fresh money. Its target for return on capital has been cut from 40 percent to 30 percent, and only by 2031.
The government wants 1.5 million new homes built in England during this parliament, and the housing secretary now calls it a stretch target. If big builders keep shrinking, that goal will be missed by a wide margin.