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I’ve received a dividend in my Stocks and Shares ISA and I’m going to use it to buy shares in Vistry (LSE:VTY). That will make it my first investment of 2026.
The stock did fairly well in 2025, but I think there’s a lot more to come. And I’m not convinced the market as a whole is fully appreciating this company’s potential.
Accounting irregularities
Vistry shares are still 50% below where they were at the end of 2024. The big reason for this is that the company is recovering from an accounting irregularity in one part of its business.
This has been weighing on profits in 2024 and 2025. But while it’s still expected to have an impact on the firm’s financial performance in 2026, the impact is set to be much lower.
The hit to profits was £91.5m in 2024 and £50m in 2025. In 2026, though, the anticipated impact is likely to be around £10m – well below previous years.
In other words, the effects of the accounting issue are starting to wear off in quite a big way. But the stock is still trading at a major discount to where it was before the news.
Partnerships
That’s a big reason I’m buying the stock, but it’s not the only one. Vistry is a housebuilder, but it doesn’t come with a lot of the structural challenges that other industry participants do.
Unlike other builders, the company focuses on building through partnerships with local authorities, housing associations, and private landlords. This has two advantages.
The first is that it means there are pre-arranged buyers, which offers protection in a weak housing market. The second is that the firm doesn’t have to finance all of its work itself.
That means it’s in a stronger position to return cash to shareholders. And it has around £700m – or 35% of its current market value – left on its existing plan to return in 2026.
Risks and rewards
I’m very positive about Vistry for 2026 and beyond. But its unique structure brings some important risks, which it’s important to focus on.
Operating through partnerships requires co-operation with other organisations that might have different incentives. And that can lead to slower decision-making or disagreements.
Another potential issue is that changes in government priorities can impact the viability of projects. Vistry can’t control these and it’s much more exposed to them than other builders.
Neither of these has been a major issue recently, but they can’t be ignored. So while I see a buying opportunity, I’m mindful that investments always come with their own risks.
Opportunity
I’m expecting Vistry to do well in 2026. Profits should increase as the impact of the accounting irregularities wears off and the partnership structure should facilitate strong capital returns.
Despite this, the stock is well below where it was a couple of years ago. That’s why it’s the first stock I’m buying for my portfolio in 2026 and I’m planning to keep buying if the stock stays down.
