Prees4 Mar 2026 17:55
Vistry boss exits as pivot to social housing sparks £500m crash
One of Britain’s biggest housebuilders has seen around £500m wiped off its value in the wake of the surprise exit of its boss. Shares in FTSE 250 housebuilder Vistry Group plunged by as much as 24pc in early trading as it announced Greg Fitzgerald’s departure after his radical pivot to affordable housing failed to bear fruit. The company warned that its profit growth in 2026 is unlikely to meet expectations. Mr Fitzgerald blamed the disappointing numbers on uncertainty and speculation around last November’s Budget for the decline. Vistry staked its bets on a so-called partnerships model, which focuses on building homes on behalf of housing associations, local authorities and private rented sector landlords rather than selling them on the open market like many of its rivals. However, the builder’s partner-funded forward order book dropped by 10pc to £3.7bn in the year ending December 2025, with Vistry citing a slowdown in contracts. Partner funded-homes, which accounted for nearly three quarters of total completions, dropped by 8pc during the year, as housing associations paused funding and some private rental housing partners refinanced. Revenue at the housebuilder fell by 4pc to £4.1bn, while total completions dropped by 9pc to 15,658 homes. Known for his charisma, Mr Fitzgerald took the helm at the company after Bovis Homes took over Galliford Try’s housebuilding business, which he ran, in a £1.1bn deal. Bovis was later rebranded as Vistry. After more than 45 years in the property industry, Mr Fitzgerald said it was “the right time” to leave. His strategy to pivot to building most of its homes for partners in 2023 was well-regarded by many in the industry. However, it later emerged that build costs at Vistry’s nine projects had been understated by £165m, leading to a string of profit warnings. More than £1bn was wiped off the value of Vistry in 2024. Anthony Codling, analyst at RBC Capital Markets, said that Mr Fitzgerald’s strategy to shift Vistry into a partnership model was a “bold and logical move given the dire shortage of social and affordable homes”. “However, such a change is a paradigm shift, and the execution of the strategy has, so far, not lived up to the group’s bold aspirations,” he said. “The need for social and affordable housing remains acute, and we may look back with hindsight and conclude that Mr Fitzgerald’s move ... was a little early.” The builder warned that its profit margins will be lower since it will need to increase its use of incentives to tempt more buyers and boost sales. These include helping buyers with deposits and stamp duty contributions. However, Vistry said it expects to see sales growth and improved cash flow in the second half of the year.
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