Housing minister Matthew Pennycook has confirmed that the government has no plans to take over housebuilder Vistry, as the partnership housing group works to refinance £900m in banking facilities and significantly reduce its regional operations.
In response to a written question from shadow housing minister David Simmonds, Pennycook said: “The government has no plans to purchase or nationalise Vistry.”
Chief executive Adam Daniels is overseeing a major restructuring programme as the company’s average daily net debt is expected to approach £800m during the second half of the year.
Job cuts are already underway, with Vistry planning to reduce its 25 operating regions to 12 from January. The restructuring is intended to deliver £50m in savings during 2027, although the company has not revealed the number of employees affected.
The scale of the financial challenge became clear in September, when Vistry reported a £661m pre-tax loss for the six months to June, compared with a £41m profit during the same period last year.
The results included a £475m goodwill impairment and an additional £73.2m provision for building safety costs. Excluding these adjustments, the group recorded an adjusted loss of £83.3m.
Vistry has started refinancing its £900m term loan and revolving credit facility. It is also preparing land sales to generate additional cash before the end of the year.
The company’s lenders had previously agreed to waive interest cover covenant requirements for 2026 and the first half of 2027, following substantial charges associated with its business review.
Daniels is prioritising cash generation and debt reduction rather than increasing development volumes. The group’s forward order book currently stands at £3.1bn.
Despite the financial pressures, Vistry continues to play a significant role in affordable housing delivery, working with more than 100 registered providers. Its housing association partners include Abri, Clarion, Bromford Flagship, Hyde, Sovereign Network Group and Sanctuary.
Key projects include a joint venture with Clarion’s development arm, Latimer, to deliver a further 1,200 homes at Sherford near Plymouth. Platform is also set to acquire all 177 affordable homes at a development currently under construction in Chelmsley Wood.
Vistry has secured a £350m grant agreement with Homes England. However, weak private sales and delays to partner-funded transactions continue to put pressure on the group’s cash position.
The housebuilder has also announced an expanded partnership with Sanctuary to progress the 2,204-home Hopfields development in south Worcester.
The joint venture project has already secured outline planning consent, with at least 20% of the homes designated for social and affordable housing.
Daniels said the development demonstrated the group’s renewed commitment to its priority regions and long-term partnerships with housing associations.