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House builder says market remains 'robust' as it reports increased profits
A major house builder said it expects the housing market “to remain robust” despite political uncertainty, as it reported boosted profits for the second half of 2016/17.
Crest Nicholson posted revenue of £419.7m in the six months to 30 April 2017, up 3% from the same period the prior year and pre-tax profit of £76.2m, up 5%.
Completions were down from 1,206 to 1,064, something mainly attributed to “private rented sector delivery timing”.
Completions were down from 1,206 to 1,064, something mainly attributed to “private rented sector delivery timing”.
Presenting the results, Stephen Stone, chief executive of Crest Nicholdon, backed the housebuilding sector to overcome the effects of the hung parliament.
“The outcome of the UK general election may introduce some uncertainty in the short term but we expect the new build housing market to remain robust,” he said.
“Strong levels of employment, low interest rates and good mortgage access – including through the Help to Buy scheme – should all contribute to a sustainable new build housing market.”
Housing figures have warned of uncertainty due to last week’s election, which saw the Conservative Party lose its outright majority in the House of Commons.
But a presentation attached to the Crest Nicholson results noted that there was “cross-party consensus on the need for more housing” and a “generally benign political environment for the housing sector”.
The firm said it was on track to deliver revenue growth over its full year, and was progressing towards its 2019 targets of £1.4bn revenue and 4,000 homes.
