The UK's Financial Reporting Council has launched an investigation into two accountants who prepared financial forecasts for Vistry, the FTSE 250 housebuilder that has repeatedly downgraded profit expectations. The probe focuses on the accountants' conduct regarding Vistry's 2023 and 2024 forecasting and financial reporting, following multiple profit warnings that have shaken investor confidence.

Vistry first alerted the market in October 2024 that building costs in its South Division were underestimated by about 10 percent, affecting nine developments. The initial £115 million pre-tax profit hit ballooned to £165 million after reviews uncovered additional cost issues at double the number of projects. The investigation will be carried out under the FRC's 2004 accountancy scheme, which requires conduct to fall "significantly short of standards" for penalties.

The probe comes as Vistry's shares plunged 25.6 percent last week when the company announced executive chair Greg Fitzgerald's departure and warned of margin pressures despite revenue growth. The stock has more than halved over five years, reflecting broader challenges in the UK housing sector including rising building costs, policy uncertainty, and higher interest rates that have deterred buyers.