Vistry Holdings Posts Profit Increase Despite Fewer Home Completions

Vistry Holdings, Britain’s second-largest housebuilder, reported a decrease in home completions while managing to increase its profits. The company completed 15,700 homes last year, reflecting a 9 per cent drop from the 17,225 homes constructed in 2024. This reduction can be attributed to challenges faced by cash-strapped housing associations and a subdued sales market, particularly prior to Rachel Reeves’s late-autumn budget.

Despite the decline in completions, Vistry’s adjusted profit before tax reached approximately £270 million for the year, a slight increase from £263.5 million in 2024. Revenue remained relatively flat at about £4.2 billion, aligning with city analyst expectations. To meet these forecasts, Vistry capitalised on lucrative land sales, generating around £200 million in sales to competitors, which yielded profits between £30 million and £40 million.

The shift in strategy, since Vistry’s formation through the merger of Bovis Homes and Galliford Try’s housebuilding division in 2019, now focuses on building for partners such as housing associations and major rental landlords. However, both sectors exhibited reduced activity last year, largely due to funding uncertainties, particularly in the first half of the year.

Vistry’s executive chairman and chief executive, Greg Fitzgerald, expressed optimism about the coming year, suggesting that the affordable housing market appears to be recovering. Despite this positive outlook, he refrained from providing formal guidance for 2026. The first half of the year is expected to remain slower compared to the latter half.

Market analysts have reacted with caution, noting that any anticipated growth in profits for 2026 might now appear challenging. This cautious sentiment is compounded by a shrinking order book, now at £4 billion, down from £4.4 billion last year. Additional concerns have been raised regarding debt levels, as government funding for housing associations is expected to roll out more slowly than initially promised.

Vistry’s share price has seen a decline, dropping 9.1 per cent to £621.5 following the trading update, as investors weigh potential hurdles ahead in the housing market.