Partnership homes specialist Vistry has delivered a resilient full-year performance after a strong second half margin rebound helped offset weaker housing volumes and flat revenues.

In a trading update this morning, the firm said adjusted pre-tax profit for the year to December 2025 was expected to come in at around £270m, up from £264m last year and in line with market expectations.

Revenue held broadly flat at £4.2bn as total completions slipped 9% to around 15,700 homes in a challenging market.

Despite the volume dip, Vistry posted a sharp improvement in profitability in the second half, lifting the full year operating margin to 8.4% from 6.7% at the half-year.

Chief executive Greg Fitzgerald said strong margins allowed the business to absorb top-line pressure caused by uncertainty around the Autumn Budget and delays to some partner-funded deals.

He added: “While market conditions remain uncertain in the near term, further benefits of our cost, productivity and mix enhancement initiatives will support the delivery of good year-on-year financial and strategic progress.”

Partner funded homes made up nearly three quarters of completions, with volumes easing in the first half as funding decisions stalled before recovering later in the year.

Affordable housing output rose around 30% in the second half, helped by clearer signals on future grant funding following June’s Spending Review.

By contrast, private rental sector volumes fell sharply in the second half as a number of partners paused delivery while refinancing. Open market completions also slipped, down around 11% to roughly 4,100 homes, with the group using incentives of up to 6% to support sales rates.

Vistry said it took adavantage of a subdued land market to secure around 9,500 plots across 30 sites in the second half, including three major strategic locations at Worcester, Rugeley and Bury St Edmunds. Higher land sales contributed around £200m of revenue during the year.

Net debt reduced year-on-year to about £145m, down from £181m, despite heavier land spend and some partner deal slippage late in the year.

Looking ahead, the group said it was well positioned to benefit from the £39bn Social and Affordable Homes Programme, with bids expected in the first half of 2026 and early allocations likely later in the year. Forward sales stood at around £4.0bn, giving strong visibility for 2026 delivery.