Housebuilder Crest Nicholson slashes profit forecast again as costs mount

The FTSE 250-listed firm further downgraded its profit expectations to a minimum of £45m in November. Crest said on Monday it was expecting to incur further costs in relation to the delayed completion of a regeneration scheme in Farnham, on top of the roughly £11m flagged last year.

The firm won the contract for the Brightwells Yard regeneration scheme in 2003, but it was slow to get off the ground and has since seen several changes to the construction plans. Once complete, it will include hundreds of apartments as well a shopping centre, cinema and restaurants. Crest said it has initiated a “comprehensive review” of the costs associated with the work needed on the long-running project, as well as its other “legacy” housing sites, which will result in extra costs. Furthermore, the company said it was expecting to take a £13m hit over a legal claim relating to a fire which damaged one of its housing sites in 2021. It provided a more positive outlook on sentiment in the housing market following the recent reduction in mortgage deals. Major lenders like Barclays, HSBC UK, Halifax and Yorkshire Building Society have cut their rates this year, raising hopes activity in the property market could heat up.