Crest Nicholson hikes profit expectations as UK housing market remains ‘resilient’
Crest Nicholson has hiked its profit expectations for the year, saying the UK housing market has remained “resilient” to the impact of Covid-19.
The UK housebuilder said profit before tax for the year ended 31 October 2021 is expected to be around £85m, up from previous expectations of £74.3m.
Crest Nicholson’s share price jumped 4.1 per cent after it increased its profit expectations this morning.
The stamp duty holiday extension and the introduction of government-backed 95 per cent mortgages that were announced in the budget this month also contributed to the uplift in profit expectations.
Crest Nicholson said its order book is more than 70 per cent covered for the year, up from 55 per cent as reported in its preliminary results in January.
The order book includes sales that will legally complete after the end of the first phase of Help to Buy and the Stamp Duty extension, “further highlighting customers’ confidence in the market”.
Anthony Codling, chief executive of property platform Twindig, said: “Housebuilder Crest Nicholson has entered the spring selling season with a spring in its step and expects its performance to benefit further from the extended Stamp Duty Holiday and the introduction of Government-backed 95 per cent LTV mortgages.
“It has put its expectations where its mouth is, suggesting that profits for FY2021 will be around £85m, almost 15 per cent ahead of current market expectations. Today’s trading update provides another example of the resilience of the UK housing market’s performance during the Covid-19 pandemic.”