Vistry raises building safety provision as half-year losses emerge

Half-year results

Vistry recorded an adjusted pre-tax loss of £83.3m for the six months to 30 June 2026, according to Construction News. The housebuilder had reported an £80.6m adjusted profit in the corresponding period a year earlier. Its interim results were announced on 24 September.

The group attributed the loss partly to discounts on homes sold on the open market to bring cash into the business. It also identified about £50m associated with the initial effects of its strategic review. Adjusted revenue fell by 9 per cent year on year, from £1.87bn to £1.7bn.

Vistry is listed in the FTSE 250. Its housebuilding-records-103m-in-extra-building-safety-costs) brands include Bovis Homes, Linden Homes and Countryside Homes.

Building safety costs and progress

The accounts included a further £73.7m building safety provision. During the half-year, Vistry used £30m of its provision, while a £5.5m discount unwind increased the balance. The provision had stood at £303.6m on 31 December 2025.

The newly identified properties comprised a small number of buildings not previously included in Vistry's developer portfolio. New information also led the group to revise its remediation estimates. Separately, Vistry reported further claims concerning buildings on which it had worked as a contractor.

Vistry said assessments had now been carried out on every building covered by the provision. Remediation was completed on 15 buildings during the first half of the year. The group reported those completions alongside the changes to its estimated building safety liabilities.

Review identifies operational weaknesses

Adam Daniels became chief executive in April, succeeding Greg Fitzgerald. Daniels said the group had since completed an extensive review of the business and had begun taking measures in response, including reducing its regional footprint.

He said market conditions had made the group's difficulties over the previous two years worse. However, the review also identified inconsistency in how Vistry delivered its work, managed its regions and allocated capital. Daniels said the group needed to bring performance across the business into line with that achieved on many of its sites.

The response included an immediate emphasis on stronger operational control and releasing cash. Daniels also identified reducing organisational complexity as a priority. He presented these measures as part of the work needed to make the group's performance more consistent.

Regional operations to be consolidated

Vistry plans to replace its 25 regions with 12 larger operating areas. Daniels said the structure would place responsibility with the strongest-performing teams, reflect reduced volume targets and deliver cost efficiencies.

The group will reduce its exposure to weaker-performing areas in the South East. Daniels said it would shift the balance of its operations towards better-performing regions in the North, Midlands and West.

London will remain part of the group's strategy, but Vistry intends to operate there at a smaller scale. Daniels said its London business would put greater emphasis on partner funding, reduce its exposure to open-market sales and work within tighter capital limits.