Housebuilder Vistry slashes profit forecasts as losses balloon

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Published: 2026-09-24T09:16:59.560Z • Permanent link

Vistry Group, one of Britain's largest housebuilders, has announced a significant adjustment to its profit forecasts, citing poor summer sales of private homes and a corresponding need for cost-cutting measures. The firm's revised annual profit forecast now falls short of market expectations, a development that may have far-reaching implications for the UK's housing market and the wider construction industry. According to recent data from the UK's Office for National Statistics, house prices in the UK have been steadily increasing over the past year, with the average house price reaching £270,000 in August.

Vistry's decision to slash its profit forecasts comes amidst a broader trend of caution in the UK's construction sector. Many analysts had predicted that the sector would experience a boost in the summer months, driven by improved weather conditions and a surge in demand for new homes. However, the firm's own data suggests that private home sales were significantly lower than expected during this period, with many prospective buyers opting to delay purchases in the face of rising mortgage rates and increased uncertainty over the future of the UK's housing market.

Vistry's CEO, Peter Markham, has expressed his disappointment at the firm's performance, stating that the company is taking "immediate and decisive action" to address the issue. The firm's revised profit forecast now includes a significant reduction in costs, with a total of 500 jobs at risk of being cut across its operations. The decision is expected to have a significant impact on the firm's ability to deliver on its commitments to investors and stakeholders, highlighting the growing uncertainty and risk in the UK's construction sector.

Vistry's revised profit forecast has significant implications for the UK's housing market and the wider construction industry. Many analysts had predicted that the sector would experience a boost in the summer months, driven by improved weather conditions and a surge in demand for new homes. However, the firm's own data suggests that private home sales were significantly lower than expected during this period, with many prospective buyers opting to delay purchases in the face of rising mortgage rates and increased uncertainty over the future of the UK's housing market.

The UK's housing market is already under pressure, with rising mortgage rates and increasing uncertainty over the future of the UK's economy contributing to a slowdown in demand for new homes. Many researchers have warned that the UK's housing market is due for a correction, with some predicting a decline in prices in the coming months. The revised profit forecast from Vistry highlights the growing uncertainty and risk in the UK's construction sector, and underscores the need for greater vigilance and caution among investors and stakeholders.

Vistry's decision to slash its profit forecasts is not an isolated incident, and reflects a broader trend of caution in the UK's construction sector. Many analysts had predicted that the sector would experience a boost in the summer months, driven by improved weather conditions and a surge in demand for new homes. However, the firm's own data suggests that private home sales were significantly lower than expected during this period, with many prospective buyers opting to delay purchases in the face of rising mortgage rates and increased uncertainty over the future of the UK's housing market.