Vistry shares surge after it receives £350m government affordable homes funding

See more This is Money on Google - save us as a Preferred Source Updated: 02:35 EDT, 26 August 2026 Vistry shares surged yesterday after it received £350m funding from the Government to build thousands of new affordable homes.The London-listed housebuilder is among the first to have been allocated cash under Labour’s new social and affordable homes programme and will be able to build 3,028 homes with the money.Shares rose as much as 18 per cent at one point on Tuesday, in a much-needed boost for new boss Adam Daniels, who has pledged to turn around the business.Vistry has been chosen as one of 33 partners to build 300,000 homes over 10 years under the government’s £39bn scheme.The company has been struggling amid a slump in demand and shares have fallen 51pc over the past twelve months. Vistry investors have hailed a vote of confidence in the house builder after it was awarded Government funding to build affordable homesVistry combines private housing with affordable properties that are built in partnerships with housing associations.It said last month it has been impacted by fewer deals with housing association partners, which had been waiting for clarity over Government funding - meaning that the latest update ends some uncertainty facing the group.The update comes as the housebuilding industry has grappled with weaker demand as the cost of borrowing has increased amid the war in the Middle East. The industry is also grappling with its own rising costs.Vistry in particular has set alarm bells ringing because of its huge debt pile, which stood at £470m at the end of June. This has led to it slowing the rate of building and selling homes for big discounts.Last month, the group said it was expecting a £30m loss in the first half of the year and its finance boss Tim Lawlor announced he would step down.New chief executive Adam Daniels has said he is ‘treating 2026 as a transition year to reposition the business to operate with significantly and sustainably lower financial leverage and healthy profitability.’Daniels is conducting a review of the company’s strategy and will set out his revival plan next month.Russ Mould, investment director at AJ Bell, said that the Government funding was a ‘much-needed vote of confidence’ but ‘may raise eyebrows given Vistry’s recent balance sheet issues.’He added: ‘Vistry is in the unenviable position of requiring a big second-half improvement to hit its full-year profit targets. This is often a recipe for a profit warning, something the business can ill afford given its credibility is already in tatters after a particularly bruising period.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you