Vistry UK Home Sales Dropped 9% in 2025 Amid Budget Uncertainty

Vistry Group Plc reported a 9% year-on-year drop in UK home completions in 2025, as uncertainty tied to the November budget affected buyer and seller behavior. The developer completed 15,700 homes in 2025, compared to 17,225 in 2024.

The firm attributed the decline to subdued market conditions in the second half of the year, driven by the anticipation of tax changes and regulatory developments. The average number of homes sold per week per site also dropped from 1.07 to 0.96 in 2025.

The UK housing sector has faced prolonged challenges, including frequent tax changes and planning hurdles, which have slowed development. These issues intensified after the Labour Party took office in 2024, with building activity contracting sharply since then.

Why Did This Happen?

The November budget, led by Chancellor Rachel Reeves, created significant uncertainty ahead of its announcement. Potential tax changes caused buyers and sellers to delay decisions, impacting completions and sales.

Vistry's CEO, Greg Fitzgerald, noted that the budget uncertainty delayed partner-funded deals but emphasized a strong second-half performance. He added that the firm's cautious optimism about lower interest rates is expected to influence performance in 2026.

How Did Markets Respond?

Vistry's revenue remained flat at £4.2 billion in 2025, despite the drop in completions. The company said it met market expectations for adjusted pretax profit, with earnings rising 2.5% to £270 million.

The firm secured 9,500 plots of land in 30 sites during the second half of 2025, a decline from 12,600 plots on 44 sites in the same period in 2024.

What Are Analysts Watching Next?

Despite the decline, Vistry remains optimistic about future growth, citing ongoing cost reduction and productivity initiatives. Fitzgerald stated that these improvements will support financial and strategic progress in 2026.

The company will need to navigate continued regulatory and economic uncertainty. However, it anticipates benefits from the promised planning reforms and lower mortgage rates.

Vistry's performance in 2026 will be closely watched, particularly as it seeks to deliver on its long-term housing goals. The firm will also be evaluated on its ability to adapt to a shifting market environment.

The housing market is expected to benefit from improved conditions in the near term, but the pace of recovery remains uncertain as policy details emerge.