Housebuilder shelves plans for expansion

CREST Nicholson has put expansion plans on hold as the market slows and the economy enters recession.

Plans announced last year to expand into three new regions will be shelved in part for now, the housebuilder said.

“Given the current macro-economic uncertainty, the group has decided to defer the planned opening of a third new division in the 2023 financial year until further notice and will adjust the expected pace of growth across its existing divisions,” management said.

Last October, Crest said it would enter Yorkshire, East Anglia and a third region of the UK yet to be announced.

The company has already bought new sites in Yorkshire and East Anglia but said yesterday that plans to continue the expansion by adding a new market would now be shelved.

Peter Truscott, chief executive, said: “We are pleased to have mobilised operations in Yorkshire and East Anglia with strong teams in place and good opportunities in these regions.

“Given the well-publicised economic conditions, it is the right decision to defer the planned opening of a third new division and adjust the pace of growth in our existing ones until a more stable environment returns.”

Sales had dropped sharply in recent weeks, with Crest Nicholson blaming “increased economic uncertainty”. Forward sales last week were around 500 below the levels seen this time last year.

The announcement came shortly before the Office for Budget Responsibility said the UK had already entered recession and predicted a 9pc drop in house prices next year.

Mr Truscott said: “The UK is clearly facing a challenging macro-economic outlook, however we remain confident in the long-term fundamentals of the UK housing market.”

Crest maintained its profit forecasts for the year despite the poor outlook. Shares fell 2pc on the FTSE 250.