Vistry has warned that delays to some home completions and deals will push its annual profit down by about £50 million, in its third profit warning in recent months.
Pre-tax profit is expected to be around £250 million, down from previous guidance of £300 million, for the calendar year.
The group, which builds affordable housing and works with local authorities, said it expects most of the deals to complete next year instead.
It also chose to halt a number of deals where “the commercial terms on offer were not sufficiently attractive”.
Vistry said: “The group believes more attractive options will be available in (2025).”
The company still saw “good demand” from its partners in the final quarter, with more than 70 deals with housing associations and local councils.
"Our top priority for 2025 is to continue building and delivering high quality mixed tenure new homes for our partners and private customers, and to do our part in addressing the country’s acute housing shortage" - Vistry
But the announcement marks Vistry’s third significant profit downgrade since October.
Then, it said it had discovered that costs for nine out of 46 developments in its southern division division, including some large scale schemes, had been understated by around 10%.
That announcement pushed expected profit down by £80 million, to about £350 million.
And weeks later, it returned to investors to say the costs would push profits down by a further £50 million to £300 million.
Vistry shares were down 28% for the year before markets opened on Tuesday.
Chief executive Greg Fitzgerald said the result was “disappointing” and that the last few months had been “challenging”.
He said: “Our top priority for 2025 is to continue building and delivering high quality mixed tenure new homes for our partners and private customers, and to do our part in addressing the country’s acute housing shortage.
“We remain committed to our partnership housing strategy and are firmly focused on positioning the business to move forwards and rebuild profitability.”
Vistry has previously said it expects to play an important part in the Government’s plans to build more homes across Britain over the next five years.
Housing secretary Angela Rayner has promised to overhaul the planning system to make it easier to build, as part of a massive planned ramp-up in homebuilding to address a shortage of supply.
This article was written by Alex Daniel from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.