Housebuilder Crest Nicholson’s share price rises as it rides the house price wave
Brexit threat? What Brexit threat? Crest Nicholson proved this morning that housebuilders continue to be on a high – despite market uncertainty.
The figures
In a trading update this morning, the housebuilder said it completed 1,206 homes in the six months to the end of April, up seven per cent from last year's 1,124 homes.
Sales rate per outlet rose four per cent on last year, to 1.06 units. Meanwhile, total forward sales rose 22 per cent to £409m, or 1,965 units, up 10 per cent on 2015.
It added it had bought nine new sites with space for 1,016 plots, or a gross development value of £416m.
All of which suggests it was on track to hit its £1bn full-year revenue target. Investors were impressed: shares were up 3.43 per cent at 543p in early trading.
Read more: London house prices broke the £600k barrier for the first time in April
Why it's interesting
It's been a rocky few months for housebuilders, what with shorting and some analysts calling the top of the market – not to mention those pesky changes to stamp duty, which have caused prospective landlords to think twice before investing in buy to let properties.
Meanwhile, the likes of George Osborne have predicted apocalyptic scenarios for house prices in the case of Brexit, which some have suggested has led potential buyers to pause for thought.
But Crest Nicholson's results – which take in the month after those stamp duty rules came into effect – suggest the market is still alive and kicking.
The company said conditions on the market continued to be "attractive", with slowing inflation in both sales prices and build cost showing "some signs of moderating".
What Crest Nicholson said
Stephen Stone, the company's chief executive, said:
We are continuing to see strong demand for new homes, underpinned by robust employment conditions and good mortgage access. The business remains well positioned to continue delivering for all of our stakeholders and is on track to reach its stated target of £1bn of revenues in 2016.
In short
No Brexit fears here – the company continues to steam towards its £1bn sales target.