Vistry, a major British housebuilder, reported a record pre-tax loss of £660 million as the UK property market faces ongoing challenges. The company announced plans to significantly reduce its annual homebuilding output and restructure its operations amid a sharp downturn in housing sales.

For the six months ending in June, Vistry posted an adjusted loss before tax of £83.3 million, a stark reversal from the £80.6 million profit recorded in the same period last year. The firm attributed the loss to £475 million in write-downs and an additional £73 million in increased building safety costs.

In response to the difficult market conditions, Vistry revealed it will scale back housebuilding targets from more than 15,000 homes annually to 12,000. This represents a substantial retreat from the previous goal of constructing 20,000 homes per year set by former chief executive Greg Fitzgerald. Alongside the production cuts, Vistry plans to reduce its regional business units from 25 to 12 and aims to achieve £50 million in annual cost savings.

Adam Daniels, who took over as chief executive, is leading the company’s strategic review and restructuring efforts. Despite securing £350 million in government funding intended to support the delivery of new social and affordable housing, Vistry’s outlook remains cautious due to subdued buyer demand.

The UK housing sector has been under pressure as rising mortgage rates and escalating living costs have dampened consumer confidence. House prices have declined by approximately 0.4% over the past year, and sellers are increasingly resorting to price reductions to stimulate sales. Reflecting this environment, Vistry indicated it would cut prices on select properties to generate cash flow, sell assets, and slow down construction at sites where sales have been weaker.

Vistry’s financial position has also worsened, with net debt climbing to £468.8 million, compared to £293.1 million in the same period last year. The company’s shares have declined more than 58% year to date, including a 7% drop following the latest financial results announcement.

The broader UK housing market is struggling to meet government targets. While the Labour Party has pledged to build 1.5 million new homes during the current parliament, official figures show that England added about 199,500 homes in the year to March 2026, down from 208,600 the previous year.

Vistry’s downturn underscores the challenges faced by housebuilders operating in an uncertain economic environment marked by higher financing costs and shifting consumer behaviour.