Vistry to cut 200 jobs as it thanks supply chain for ‘productive discussions’ over price cuts

Vistry has announced it will cut around 200 jobs as a result of its restructuring to focus on affordable housing partnerships.

The housebuilder, in a trading update to the City today, also said its plan, which will see it close five regional business divisions, will mean a £40m hit to its profit.

It now expects to make £410m in adjusted pre-tax profit in 2023, rather than £450m as originally stated. Vistry said integrating its housebuilding division into its partnerships arm is expected to save £25m a year, on top of £60m annual savings following the acquisition of Countryside in 2022.

Vistry also used its update to say it “appreciate[d] the productive discussions” it has had with supply chain partners over its proposals for 10% pay cuts on all existing and future contracts.

It said: “With a high level of visibility on forward sales, build programmes and revenues in the partnerships model, we can offer greater continuity of work to our suppliers and, working with them, can increase the overall rate of delivery on our sites and supply of much needed affordable mixed tenure homes.”

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Vistry said the summer slowdown in open market private sales, which it put down to higher interest rates and cost inflation, has continued into the autumn.

It added: “We have not seen the seasonal increase in private sales since September that we had expected.” The group’s average weekly sales rate since 1 July was 0.60 units, compared to 0.64 the previous year.

But it said demand for mixed-tenure affordable housing from housing associations and councils was continuing.

Vistry has previously said it is targeting 25,000 homes a year under its new strategy, which would be a doubling of its current build rate. It built 6,050 homes in the first six months of 2023.

Vistry said its average net debt for the 2023 calendar year is now forecast to be higher than previously expected at £450m. But said net debt should reduce to £100m by the year end.