Crest Nicholson slashes profit forecasts as UK housing market struggles ahead of Budget
UK housebuilder Crest Nicholson has cut its profit forecasts for the year, citing uncertainty ahead of Chancellor Rachel Reeves’ upcoming Budget. The company also announced plans to close a regional office, putting around 50 jobs at risk.
Meanwhile, in Germany, Housing Minister Verena Hubertz (SPD) is pushing forward with new policies to speed up construction, including an €800 million boost for new housing projects.
Crest Nicholson’s latest financial update revealed weaker-than-expected results. Underlying pre-tax profits for the year are now set to fall below the previously guided range of £28 million to £38 million. The company also expects net debt to be lower than the earlier forecast of £40 million to £90 million.
The housebuilder will complete fewer homes than planned, with around 1,691 units expected this year. Shares dropped by as much as 13 per cent in early trading before recovering slightly to trade 9 per cent lower by late morning. Analysts at RBC Capital Markets remain positive about the firm’s turnaround strategy, calling the share price dip a potential buying opportunity.
The UK housing market has struggled through the summer, with demand weakened by ongoing uncertainty over government tax policies. Crest Nicholson’s restructuring includes closing a regional office, affecting up to 50 employees.
In Germany, Minister Hubertz is accelerating housing development through her 'Bau-Turbo' initiative. This includes faster planning permissions, simplified building regulations, and an €800 million revival of new-build subsidies. The measures aim to address the country’s housing shortage by cutting red tape and increasing construction activity.
Crest Nicholson now faces a challenging year with reduced profits, fewer home completions, and job cuts. Investors reacted sharply to the news, though some analysts see long-term potential in the company’s recovery plan.
In Germany, Hubertz’s policies could streamline housing projects and boost supply. The €800 million funding injection and regulatory changes may help ease pressure on the construction sector in the coming months.
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