Crest Nicholson, one of the UK's leading housebuilders, has reported a profit of £63.6m for the financial year 2026, at the lower end of its guidance. Despite this, the company's shares fell by 12% in morning trading after it revealed a loss of £16.3m in the first half, from a profit of £20.5m in the same period last year.
The company's housebuilding sales fell by 14% in the first half, to £1.4bn, with a decline in the sale of new homes contributing to the loss. Crest Nicholson's chief executive, Patrick Bergin, attributed the disappointing results to a 'challenging' first half, citing uncertainty in the housing market and rising costs.
The FTSE 100-listed company's results come as the UK housing market continues to face uncertainty, with rising interest rates and a slowing economy affecting demand for new homes. Despite this, Crest Nicholson remains upbeat about its prospects, with Bergin stating that the company is 'well-positioned' to take advantage of a recovering market.
The Bank of England has kept interest rates on hold in recent months, despite concerns about inflation and the economy. However, some economists have warned that rates may need to rise further to control inflation, which could have a further impact on the housing market.
Crest Nicholson's results are likely to be of concern to mortgage holders and savers, who are already facing rising costs and uncertainty about the future. The company's shares fell by 12% in morning trading, indicating that investors are also taking a cautious approach to the housing market.