Crest Nicholson experiences a 60% fall in pre-tax income for the half 12 months.
The UK housebuilder warns of a continued slowdown within the housing market as rising mortgage charges and value of residing pressures impression demand.
The corporate’s adjusted pre-tax revenue for the six months to finish of April stood at £20.9m, down from £52.5m for a similar interval a 12 months earlier.
Crest Nicholson chief government Peter Truscott feedback:
“We began our first half amidst the worst of the financial uncertainty arising from the September 2022 mini-budget. Quickly falling shopper confidence and rising rates of interest instantly translated into softer demand within the housing market”.
“On the time we outlined that, with a bundle of smart measures to revive financial stability and belief, the market would stay resilient and this has confirmed to be the case.”
Truscott explains that the continuing lack of housing provide is constant to help home costs and these components are additionally driving robust ranges of rental inflation.
“The financial case for purchasing a house subsequently stays compelling, however for a lot of first time consumers the upper price of borrowing and the cessation of Assist to Purchase are prohibitive to realising this ambition”.
He concludes: “If rates of interest proceed to rise, and stay elevated for a sustained time frame, it will undoubtedly exacerbate this situation even additional and begin to impression demand and confidence once more. We proceed to name on Authorities to recognise this problem and supply additional help to those potential owners.”