Vistry is sharply reducing its housebuilding ambitions after a failed expansion strategy led to repeated profit warnings, operational problems and a collapse in its share price. New chief executive Adam Daniels says the company’s partnership model was fundamentally viable, but poor execution, weak controls and overpaid land contributed to serious difficulties, particularly in southern England.

The group now plans to build about 12,000 homes annually, down from a target exceeding 20,000, while reducing its long-term return-on-capital goal from 40% to 30% by 2031. Vistry will focus more on northern England, sell down land to strengthen its finances and benefit from a £350m government grant to build 3,000 affordable homes. Its retreat also highlights wider doubts about the government’s target of constructing 1.5m homes in England, as major builders increasingly prioritise cash and financial discipline.