Vistry cheers Labour’s affordable homes pledge after profits slump

Housebuilder Vistry has seen profits tumble after cost reporting issues in its Southern division, but is hoping for a boost from the Government’s £2 billion affordable homes pledge.

The group saw pre-tax profits plunge by 64% to £104.9 million in a “challenging” 2024, with results dragged lower by a £91.5 million hit for cost forecasting errors in its Southern business, as well as the impact of some deal delays.

But the group is hoping to draw a line in the sand after the difficult year, with the Government’s move announced earlier this week to pump £2 billion of funding into affordable homes across the UK seen as being “very positive”.

Chancellor Rachel Reeves this week announced grants for social and affordable homes, as part of the Labour Government’s aims to build 1.5 million homes over five years.

Chief executive Greg Fitzgerald said: “2024 was a challenging year for the group resulting in a disappointing financial performance, despite strong growth in completions and revenue.

“We have concluded a rigorous set of reviews and year end procedures with no further issues being identified, and much work has been done to ensure the group has the right people, structure, systems and controls in place to move forward with confidence.”

He added the group’s “focus is now firmly on the future”.

“We are pleased to see the Government bring forward a further £2 billion of much-needed funding for affordable homes, and will be seeking to progress as quickly as possible with our partners to deliver quality new homes across the country,” he said.

The firm revealed in January that the profit impact of the cost forecasting errors in its Southern division would total £165 million, with £91.5 million taken in 2024 and the remainder in 2025 and future years.

Vistry said: “There has been an extensive review process across the group to fully understand the cost forecasting issues, with a clear set of immediate priorities and actions for the business.

“Organisational and leadership changes have also been implemented to best position the group going forward.”

Vistry also introduced an internal whistleblower line for staff, called the “speak up service”, which will now allow employees to voice concerns confidentially to senior management.

Vistry’s annual results showed 2025 had also started slowly.

Its average weekly sales rate dropped to 0.59 per site so far in the year to date from 0.81 a year ago, although it said the private open market had seen “some uptick in sales” over the past month, adding it “expects this to continue to improve”.

Shares in the firm fell 5% in Wednesday morning trading.