16th May 2016 06:43
LONDON (Alliance News) - Crest Nicholson Holdings PLC on Monday said it has seen signs that both sales prices and build costs are moderating in its first half, as it said it was continuing its strategy to grow its average selling price.
The housebuilder said it is on track to reach its stated target of GBP1.00 billion revenue for the full year to October 31, after having seen a good performance in its first half to April 30.
Unit completions rose 7.0% in the half-year to 1,206,compared to the same period a year earlier. Forward sales at the end of April, excluding private rented sector, were at GBP324.0 million, up around 8.0% from the GBP300.0 million reported a year earlier.
In the six-month period, Crest Nicholson said its sales per outlet, including private rented sector were 1.06, up 4.0% on the 1.02 seen in the same period a year earlier.
However, Crest Nicholson said, as expected, reservation values, excluding private rented sector, for the first half of the year reflect higher average selling prices, up 24% to GBP387,000, and a lower rate of sale per outlet, down 7.0% to 0.87, compared to the equivalent period a year earlier. The company said this was in line with its strategy to grow average selling price by investing in "good quality locations".
Crest Nicholson said inflation in both sales prices and build cost have shown some signs of moderating during the first half, which will help to "maintain affordability and support a stable housing market". The company noted that production capacity, clearance of planning conditions and skills availability are the critical constraints on volume delivery and will continue to be key areas of focus for the sector.
"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 GBP1.00 billion of revenue in 2016," said Chief Executive Stephen Stone.
By Hannah Boland; [email protected]; @Hannaheboland
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