Vistry’s building safety provision has risen above £350m after the housebuilder identified additional buildings and reassessed the expected cost of remediation work.
In its interim results for the six months to 30 June 2026, announced on 24 September, the group said it had recognised an additional building safety provision of £73.7m.
Alongside the £73.7m addition, Vistry recorded £30m of provision used during the period, while a £5.5m discount unwind also increased the overall provision.
As a result, the group’s total building safety provision reached £352.8m by the midpoint of 2026, up from £303.6m at 31 December 2025.
Vistry said the increase reflected a small number of buildings that had not previously been included in its developer portfolio, revised estimates for remediation work following new information and additional claims relating to buildings where it had acted as a contractor.
“The group continues to make good progress across its remediation portfolio, with all buildings included within the provision now assessed and remediation works completed on 15 buildings during the period,” it said.
The FTSE 250-listed group, which operates the Bovis Homes, Linden Homes and Countryside Homes brands, reported a first-half adjusted loss before tax of £83.3m, compared with an adjusted profit of £80.6m in the same period a year earlier.
Vistry attributed the adjusted loss to discounts on homes sold on the open market to generate cash, alongside around £50m associated with the early effects of its strategic review.
The group also recorded a 9 per cent year-on-year decline in adjusted half-year revenue, which fell to £1.7bn from £1.87bn.
Chief executive Adam Daniels said Vistry had introduced a number of measures as part of the response, including reducing its regional footprint.
He said Vistry would reduce its exposure to “underperforming” areas of the South East and “rebalance” its operations towards better-performing regions across the North, Midlands and West.
London remained “strategically attractive”, Daniels added, but Vistry would now operate at “lower scale, with stronger partner-funded, lower open-market exposure and tighter capital limits”.
The changes will see Vistry consolidate its operations from 25 regions into 12 larger operating areas, with the aim of focusing responsibility on the “highest-performing teams, reflect lower volume targets and to obtain cost efficiencies”.
Daniels said that since taking over from long-serving chief executive Greg Fitzgerald in April, “substantial progress” had been made in refocusing the business and completing an extensive review.
“While the challenges we have experienced in the past couple of years have been exacerbated by market headwinds, the review has also made clear that our execution, regional discipline and capital allocation have not been consistent enough,” he said.
“These issues can be fixed, and we are taking the necessary steps to ensure the strong performance we have seen across many of our sites is replicated across the group as a whole.
“Achieving this has necessitated an urgent focus on increasing operational control, releasing cash, reducing complexity and establishing a base from which we can deliver more consistently.”
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