Vistry Faces Profit Slump as It Eyes Recovery with £2 Billion Affordable Housing Boost

The housebuilder's 64% drop in pre-tax profits underscores a challenging 2024, but the UK government’s funding pledge offers potential for a turnaround.

• Vistry Group reported a 64% drop in pre-tax profits for 2024, driven by cost forecasting errors, delays, and increased spending on building safety repairs.
• The UK government announced a £2 billion funding pledge for affordable and social housing, a move welcomed by Vistry as it aligns with its strategic focus on affordable housing partnerships.
• Vistry has implemented operational reforms, including leadership changes and the introduction of a whistleblower line, to address past cost reporting issues and rebuild confidence.
• Despite the funding boost, Vistry’s early 2025 performance remains subdued, with average weekly sales rates below prior-year levels and shares falling 5% after its financial results announcement.
• The company completed 18% more affordable homes in 2024 compared to the previous year, signaling progress in its pivot toward partnerships with housing associations.

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