Housebuilder Vistry is closing 12 of its 25 offices as part of a restructuring aimed at saving £50 million next year, according to a trading update from the company.
The closures, which will take effect in January, come as the company faces mounting financial pressures. Vistry expects its debts to reach £800 million in the second half of 2027, up from under £300 million during the same period last year.
Financial performance
The company reported a record loss of £661 million for the first half of the year. Vistry’s shares have declined 57% since the start of 2027, reflecting broader challenges in the housebuilding sector.
Adam Daniels, Chief Executive of Vistry, described the office closures as “difficult but necessary” in the current market environment. The company has not disclosed how many of its 4,500 staff will be affected by the restructuring.
The announcement follows earlier measures to stimulate sales, including price reductions of more than £100,000 on some properties. Vistry stated it plans to reduce its building output as rising mortgage rates continue to impact demand across the sector.
Market context
The housebuilding industry has faced sustained pressure from elevated borrowing costs and weakened buyer sentiment. In June, when Vistry implemented its price cuts, the company maintained it had a “robust forward order book of £4.5 billion” and continued to “build at scale and pace”.
Last year, Vistry was among seven housebuilders that agreed to pay a combined £100 million settlement following allegations of price-fixing collusion.
A spokesperson for Vistry confirmed the company is “still working through its plans” and declined to provide specific figures on anticipated job losses at this stage.
The restructuring represents one of the most significant contractions by a major UK housebuilder in recent years, highlighting the ongoing challenges facing the residential development sector amid persistent economic headwinds.
