Vistry reports 9% drop in completions despite affordable homes boost after Spending Review

With bids expected to open in February, the house builder said it is “hopeful that early allocations commence by the half year or in early Q3”.

“The SAHP will drive increased activity, supporting our growth strategy with the grant funding timetable providing greater visibility in the second half,” the trading update added.

Vistry has a forward sales position of £4bn, down on the £4.4bn projected at the end of 2024, which it said provides “strong coverage for 2026 delivery”.

The trading update also said Vistry has completed a first site acquisition for the group’s joint venture with Homes England, announced in September last year.

It noted an additional £50m of grant funding that the house builder secured from Homes England in September and expects to receive during Q2 of 2026.

Vistry said its group profit before tax at the end of 2025 is expected to be around £270m, up from £263.5m at the same point the previous year.

On partner-funded units, the trading update said: “Additional affordable housing volumes increased by [around] 30% in the second half compared to the same period last year, benefitting from the increased clarity of future funding following June’s Spending Review.

“Conversely, during the second half a number of active [private rental sector] partners paused delivery while they refinanced which contributed to a reduction [of around 25%] in volumes versus the prior year.”

Vistry said the 10-year rent settlement announced at the Spending Review and the decision on rent convergence, expected this month, will “further reinforce investment capacity for partner affordable housing partners”.

“As with all these initiatives, we are encouraging pace of decision-making and process in order to accelerate the much-needed step up in housebuilding,” the trading update added.

Greg Fitzgerald, Vistry’s chief executive, said the group had “a particularly strong second half performance despite continued challenges in the open market and the uncertainty related to the November Budget”.

He continued: “Our partnership housing strategy positions us well to play a key role in the delivery of the Social and Affordable Homes Programme 2026-2036.

“We will be targeting early deployment of allocations for our partners and ourselves to kickstart the growth of affordable housing supply, and we expect this to contribute to our second half performance in 2026.

“Encouragingly, we have already completed a first site acquisition for the group’s joint venture with Homes England.”