Market Analysis

British housebuilder Crest Nicholson (LON:CRST) announced on Tuesday that it anticipates a potential decrease of up to 11% in the number of homes it could construct in fiscal year 2024, citing ongoing challenges within the housing market.

While the British housing market exhibited initial signs of stability in early 2024 due to lower mortgage rates, sustained subdued demand throughout the previous year and the Bank of England's delay in reducing interest rates, coupled with ongoing macroeconomic uncertainties, have tempered expectations for a robust recovery.

Crest Nicholson, headquartered in Surrey, reported a year-to-date sales rate of 0.44 per outlet per week across 46 outlets, which improved to 0.52 over the last eight weeks leading up to March 15.

The company also stated its expectation for stable sales prices throughout the 2024 financial year.

Focusing primarily on suburban areas outside London and southern England, Crest Nicholson forecasts a homebuilding range of 1,800 to 2,000 units for the year ending October 31, a decrease from the 2,020 homes built in the previous year.

All opinions, news, research, analysis, prices, or other information is provided as general market commentary and not as investment advice and all potential results discussed are not guaranteed to be achieved. The information may have been derived from publicly available sources, company reports, personal research, or surveys. Past performance is not indicative of future performance. All trading involves risk to capital. Service available to professional clients only.

Paraphrasing text from "Investing UK" all rights reserved by the original author.