Crest Nicholson Holdings Plc cut its full-year outlook, saying trading conditions for the housing market worsened during the summer.
Despite “resilient” pricing, the company now expects its adjusted profit before tax to be around £50 million, down from its previous estimate of £73.7 million, according to a statement.
Continued economic uncertainty is deterring prospective home owners, the company said, adding that transaction levels across the industry have weakened further in recent weeks.
Investors are now looking to the autumn selling season to see how UK homebuilders will perform, according to Investec analyst Aynsley Lammin. That’s when the sector’s resilience or weakness in the face of mortgage increases will become clearer.
UK homebuilders are also slashing jobs amid the downturn. Persimmon Plc announced earlier this month it had cut headcount by 300 in the six months through June, while Bellway Plc said it plans to slash jobs as it continues to navigate an uncertain economic outlook.
Author: Chloé Meley and Maggie Shiltagh
