Crest Nicholson warns over rising borrowing costs as profit shrinks

Housebuilder Crest Nicholson has reported shrinking sales and profits amid “rapidly” falling consumer confidence and rising borrowing costs, following the September mini-budget.
By Greg Wright
Published 8th Jun 2023, 08:42 BST

The company called on the UK Government to support budding homeowners facing higher mortgage rates.

Its revenue fell by more than a fifth to £282.7m in the six months to the end of April, from £364.3m the previous year. The decline reflected economic uncertainty and softer demand for homes weighing on the housing market, the builder said.

Hide Ad
Hide Ad

The firm saw its adjusted pre-tax profit more than halve from £52.5m to £20.9m this year, which it said was worsened by cost inflation affecting construction. The level of build cost inflation has remained close to 10 per cent over the period, Crest said, although there are signs of costs easing and suppliers beginning to offer reduced prices.

Housebuilder Crest Nicholson has reported shrinking sales and profits amid “rapidly” falling consumer confidence and rising borrowing costs, following the September mini-budget.Housebuilder Crest Nicholson has reported shrinking sales and profits amid “rapidly” falling consumer confidence and rising borrowing costs, following the September mini-budget.
Housebuilder Crest Nicholson has reported shrinking sales and profits amid “rapidly” falling consumer confidence and rising borrowing costs, following the September mini-budget.

A slowdown in construction work has also helped ease materials shortages felt last year, post-pandemic and worsened by the war in Ukraine.

Crest said the average number of properties it sold a week fell to 48 from 58 the same time last year.

Related topics:UK GovernmentUkraine