Housebuilder Vistry has warned it is heading for a £30 million half-year loss as weak demand, falling buyer confidence and a major company overhaul pile pressure on the struggling property sector.
Shares in the group tumbled by as much as 12 per cent in early trading after Vistry revealed it expects to swing from a £40.9 million profit last year into a loss for the first six months of 2026.
The company blamed tough trading conditions and a series of measures being introduced by new chief executive Adam Daniels to improve cash generation and reshape the business.
These actions include increased incentives and discounts for buyers, as well as accelerating asset sales.
Vistry said conditions worsened between April and June as uncertainty and weaker customer confidence affected the housing market.
The company said the disruption caused by the conflict in the Middle East had added to existing pressures facing the sector.
It warned that conditions are unlikely to significantly improve in the second half of the year or early 2027.
Although we would welcome some demand-side stimulus, we are not anticipating a significant change in open market conditions,” the company said.
The warning comes as UK housebuilders continue to face pressure from high borrowing costs, stretched affordability and cautious buyers.
As part of a major review led by Mr Daniels, Vistry has completed a voluntary redundancy programme affecting fewer than 5 per cent of its 4,500 employees.
The move has delivered around £25 million in savings, with further efficiencies expected as the company restructures.
Vistry said the cost reductions introduced this year will provide a full-year benefit from 2027.
Mr Daniels said the company was making progress in refocusing the business after taking over from former executive chairman Greg Fitzgerald in March.
“In the three months I have been in the role, I am encouraged by the progress we have made, and continue to make, on re-focusing the business,” he said.
“We are taking the necessary decisions to position Vistry for future success.”
Vistry completed around 6,100 homes in the first half of the year, down from 6,889 during the same period previously.
The company also announced that chief financial officer Tim Lawlor will leave in October to join a large privately owned business outside the sector.
Despite the difficult first half, Vistry said it remains on track for underlying pre-tax profits of around £200 million, although this excludes potential one-off costs linked to the chief executive’s review.
Market analysts warned that investors are increasingly concerned about the wider construction sector.
Dan Coatsworth, head of markets at AJ Bell, said raw material costs and labour pressures had continued to weigh on housebuilders.
He said Mr Daniels was striking an optimistic tone but acknowledged the new chief executive faced a difficult challenge.
The latest warning highlights the continuing struggles facing Britain’s housebuilding industry, with developers battling against weak demand and uncertainty over when the property market will fully recover.
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