Government rules out buying or nationalising struggling Vistry

The Government has no plans to buy or nationalise housebuilder Vistry, housing minister Matthew Pennycook has confirmed. Replying to a written question from shadow housing minister David Simmonds, he said: "The government has no plans to purchase or nationalise Vistry."

The statement comes as the partnership housing group cuts jobs and works to bring down its borrowing. Vistry is seeking to refinance £900m of bank facilities and is more than halving its regional operations.

Chief executive Adam Daniels is leading a major downsizing. Vistry will reduce its 25 operating regions to 12 from January, targeting £50m of savings in 2027. The company has not said how many staff will go. Average daily net debt is heading towards £800m in the second half.

In September Vistry reported a pre-tax loss of £661m for the six months to June, against a £41m profit a year earlier. The result included a £475m goodwill write-down and an extra £73.2m building safety provision. On an adjusted basis the group lost £83.3m.

Vistry has begun refinancing its £900m term loan and revolving credit facility, and is lining up land sales to raise cash before the year-end. Its banks had already agreed waivers of interest cover covenants for 2026 and the first half of 2027, following large charges linked to the business review.

Daniels is putting cash generation and debt reduction ahead of volumes. The forward order book stands at £3.1bn. Vistry has signed a £350m grant agreement with Homes England, but weak private sales and delays to partner-funded deals continue to squeeze cash.

The group works with more than 100 registered providers, including Abri, Clarion, Bromford Flagship, Hyde, Sovereign Network Group and Sanctuary. Recent deals include a further 1,200 homes with Clarion's development arm Latimer at Sherford near Plymouth, and Platform taking all 177 affordable homes at a scheme under construction in Chelmsley Wood.

Vistry has also announced an expanded partnership with Sanctuary to deliver the 2,204-home Hopfields scheme in south Worcester. The joint venture already has outline planning consent, with at least 20% of homes earmarked for social and affordable housing. Daniels said the scheme reflected a renewed focus on priority regions and long-term housing association partnerships.