Vistry plummets on CEO exit and falling completions as other housebuilders defy gloom

Shares in housebuilder Vistry plunged by 21 cent this morning as it took a hit from Budget uncertainty and announced the exit of its chief executive.

The FTSE 250 firm, which builds affordable homes, said Greg Fitzgerald will retire next year, after which the chair and chief executive roles will be separated.

It came as Vistry reported a 9 per cent drop in completions to 15,658 units, which it said reflected ‘continued challenges in the open market’ and November’s Budget uncertainty.

This was partially offset by higher average selling prices, with underlying revenue falling at a slower pace of 4 per cent, but adjusted pre-tax profit was broadly flat on last year.

Shares in Vistry plummeted 21 per cent to 497.4p by lunchtime.

Its sales rate of 1.42x in the year-to-date is more than double that achieved at the start of last year.

‘While not said explicitly, the implication is that the company is discounting prices quite aggressively in order to drive volumes up,’ said Oli Creasey, head of property research at Quilter Cheviot, ‘as this sales rate is well in excess of anything housebuilders have achieved recently, or even at the very peak of Help to Buy.’

The outlook for 2026 is cheerier with an expectation for revenues and volumes to return to growth, though the search for a new CEO could be a ‘transition risk’, said Aarin Chiekrie, equity analyst at Hargreaves Lansdown. 

He added: ‘Potential investors will need a lot of patience if they want to back this horse, and there looks to be better ways to play the UK housing market as things stand.’

Barratt Redrow also announced the departure of its chief executive David Thomas, who will retire and be replaced by Ventia boss Dean Banks.

Shares in the housebuilder were choppy following the announcement and are trading down 1 per cent at 336.10p by 11am.

Other housebuilders defy sector gloom

Cairn Homes and Galliford Try’s results defied the uncertainty among the rest of the sector after the Budget. 

Galliford Try reported a 20.5 per cent rise in pre-tax profits to £24.7million, boosted by higher-than-expected revenues of £934.9million across its portfolio.

It declared an interim dividend of 6.5p per share, up from 5.5p a year earlier.

The construction giant said planned infrastructure investment ‘continues to provide a supportive backdrop for growth,’ with 98 and 80 per cent of project FY26 and FY27 revenue secured.

‘Whereas the purer-play housebuilders have been disappointing, Galliford’s broader portfolio approach has paid dividends, quite literally, and helps insulate it to a degree from the travails of the housing market,’ said Chris Beauchamp, chief market analyst at IG.

Shares in Galliford Try rose by 4.3 per cent to 556p.

Meanwhile, Cairn Homes ‘continues to punch above its weight,’ said Mark Crouch, market analyst for eToro, as revenues rose 10 per cent and eyed a record order book of 3,452 homes.