Housebuilding giant Vistry to halve regional operations as debt pressures mount
Housebuilding giant Vistry is pressing ahead with plans to halve its operating regions and cut jobs as it battles weak buyer demand and mounting pressure to reduce debt.
The group, which has a significant presence across the Midlands, is reducing its operating regions from 25 to 12 as part of a restructuring designed to cut costs by £50m in 2027.
The company confirmed that the process of reducing headcount has begun, although it has not disclosed how many jobs are at risk.
The new regional structure will become operational in January, with managing directors and their management teams already appointed.
The changes follow a strategic review announced in September, which set out plans to create a smaller business focused on generating cash, reducing borrowing and improving profitability.
Vistry said average daily net debt in the second half of 2026 is expected to be approximately £800m, reflecting difficult market conditions and delays to some affordable housing transactions.
The company has also begun refinancing its £900m term loan and revolving credit facility as it seeks to strengthen its balance sheet.
Its forward order book stands at £3.1bn under a revised reporting definition introduced at its half-year results.
Chief executive Adam Daniels said: “Since announcing the conclusions of the CEO Review in September, we have continued to take decisive action to create a smaller, more focused and disciplined business.
“Our immediate priorities remain generating cash, lowering financial leverage, improving operational control and reducing complexity, whilst maintaining tight commercial discipline.”
He added: “We have also started the difficult but necessary process of reducing headcount and restructuring the operating regions from 25 to 12.
“The MDs and their management teams have been confirmed, and the new structure will be in place and operational from January.”
The company said conditions in the private housing market remain difficult, with affordability pressures, cautious consumer confidence and wider economic uncertainty continuing to weigh on demand.
Vistry is responding by adjusting prices and buyer incentives on individual developments and aligning construction activity more closely with sales.
The group also warned that some first-time buyers could delay purchasing decisions while awaiting details of the Government’s Your First Home initiative.
Meanwhile, activity involving housing associations and other affordable housing partners is recovering more slowly than expected, partly because of the early stage of funding allocations under the Government’s Social and Affordable Housing Programme.
Vistry has signed a £350m grant agreement with Homes England, which it expects to support its affordable housing development pipeline.
The group said it would prioritise the commercial terms and cash returns from new agreements rather than simply increasing housing volumes.
Daniels said: “We are seeing benefits from our commercial initiatives, but current trading continues to reflect a challenging Open Market backdrop and a slow but gradual build-up in Partner Funded transaction activity.”
The business has also begun reshaping its land portfolio, with several transactions expected to complete before the end of the year.
Vistry said these disposals, alongside tighter control of construction spending and improved terms on affordable housing contracts, should contribute to debt reduction.
The group has appointed Robert Allen as interim chief financial officer ahead of Helen Miles joining as permanent CFO in 2027.
Despite the challenges, Vistry said it remained on track to deliver its revised strategy and expected year-end net debt to fall within analysts’ forecasts.
Daniels added: “I am confident that the actions we are currently undertaking will establish a high performing, more robust and disciplined platform from which Vistry can deliver its revised strategy.”
