Housebuilder Vistry has announced a significant reduction in its annual housebuilding target, now aiming to construct 12,000 homes a year, down from a previous ambition of 20,000. This change follows a review by new chief executive Adam Daniels.
The company also revised its target for return on capital employed, now aiming for 30% by 2031, a decrease from the earlier goal of 40%. A greater proportion of the planned homes will be built in the north of England.
Vistry, formed from the Bovis, Linden, and Countryside brands, had previously focused on "affordable mixed-tenure housing" in partnership with councils and housing associations. Former executive chair Greg Fitzgerald, who departed in May, had championed a "capital light" approach.
Despite its financial challenges, Vistry received a £350m direct grant last month to build 3,000 affordable homes as part of the government's £39bn social and affordable homes programme.
The wider housebuilding sector is reportedly facing difficulties, citing issues such as energy prices, labour costs, regulation, planning delays, and taxes. Housing Secretary Angela Rayner has referred to the government's target of building 1.5 million homes in England this parliament as a "stretch target."