Builder Crest Nicholson predicts fewer new homes this year
Crest Nicholson says that the number of houses it will build this year could fall by up to 11 percent due to soft demand, despite a pickup in activity since January.
Crest Nicholson says that the number of houses it will build this year could fall by up to 11 percent due to soft demand, despite a pickup in activity since January.
At its trading update, it said that it expects 1,800 to 2000 over the 12 months to the end of October, versus 2020 for the preceding period last year. It expects two-thirds of completions to occur in the second half of its financial year.
Crest Nicholson said that although sales prices are stable and are likely to remain so for the rest of the year, and that reservation rates have picked up since the end of January, building activity has not recovered yet due to tough market conditions. It said the planning system “continues to be challenging”.
Elsewhere, Wickes warns that impending increases in both the national minimum wage and business rates will hurt its profits, which were flat at £41.4million last year.
The DIY and garden centre chain blamed the tough consumer environment caused by soft demand and high inflation for its flat profits. Its annual revenues were also flat at £1.6billion. It said that trading since the start of 2024 has been in line with last year, with demand for big ticket items, along with design and installation work, down.
