Vistry ‘confident’ in partnerships strategy with housing associations despite profit warning

Changes to the division’s management team are “underway”, the firm said. “We are commencing an independent review to fully ascertain the causes,” Vistry said.  

Despite today’s announcement, the company said: “The group is confident in its unique partnerships strategy.”

Vistry’s partnerships business specialises in joint ventures with traditional housing associations, for-profit registered providers, councils and private rented sector providers.

Last year, the firm revealed plans to merge its traditional housebuilding arm with its partnerships business to focus solely on mixed-tenure affordable housing.

In its update today, the group added: “We remain committed to delivering a strong increase in high-quality mixed-tenure housing.” 

Vistry said it is still on track to build “in excess” of 18,000 homes this financial year, compared to 16,188 the year before.

This summer Vistry also revealed plans to capitalise on shared ownership demand by reigniting its for-profit provider Linden First.

The company is aiming to grow the provider’s portfolio to around 5,000 homes within three years. 

In June, Vistry also agreed a deal to sell 1,750 homes to US investment giant Blackstone. 

Shares in Vistry initially tumbled by around 30 per cent in value off the back of today’s profit warning, but have since recovered slightly.