The Financial Reporting Council has launched an investigation into the conduct of two accountants linked to the financial reporting and forecasting of Vistry Group’s South Division.

The probe will examine work connected to the house builder’s financial statements for the years ending 31 December 2023 and 31 December 2024.

The regulator confirmed the investigation will be led by the FRC’s Executive Counsel.

Vistry issued the first of three profit warnings back in October 2024, linked to cost overruns within its South Division housing partnerships business.

In the first, it warned that the business had underestimated building costs for projects in its South Division by about 10 per cent, affecting nine developments out of 46 in the region.

An initial estimate of a £115m hit to pre-tax profit swelled to £165m later that year after reviews unearthed further cost issues at double the number of projects.

The inquiry focuses specifically on the actions of the two accountants and does not extend to Vistry Group or any other individuals or organisations, the regulator stressed.

Officials said the opening of the investigation does not indicate that misconduct has been established or will necessarily be found.

The FRC has not yet named the individuals involved or given further details about the accounting issues under review.