Crest Nicholson Warns of £10m Loss Amid Property Market Downturn
UK housebuilder Crest Nicholson has warned it will post a full-year loss of £10 million, reversing earlier guidance for a profit. The company also cut its home-building forecast from up to 1,500 homes to as many as 1,400 units this year — marking the third reduction in six months. Shares fell by over 12% following the announcement, hitting record lows. Crest Nicholson cited weaker-than-expected market conditions and aggressive pricing competition among rivals for its struggles. The firm is also experiencing delays in negotiations with lenders regarding debt terms, despite efforts to reduce costs and sell land to cut net debt from £35m earlier this year to between £70m and £90m by the end of the financial period. The company's difficulties reflect broader challenges facing UK housebuilders amid rising mortgage rates that have dampened buyer demand. These conditions are also threatening Labour’s goal of building 1.5 million homes during its current parliamentary term.
Topics: debt_negotiations loss_warning real_estate