Sales pick up at Crest Nicholson

Crest Nicholson reported improving sales on Thursday, as consumer confidence in the housing market started to return.

Updating on trading, the FTSE 250 homebuilder said its sales per outlet per week (SPOW) rate was 0.52 in the first 11 weeks of the calendar year, compared to 0.35 in the previous 11-week period.

It attributed the uptick to an "ongoing and steady recovery in overall consumer confidence and housing market activity since the start of the year", with average selling prices continuing to be supported by a lack of housing supply.

It added: "The market is clearly softer than the previous two years of trading. However, it remains resilient.

"Mortgage rates have progressively reduced as the outlook for the future interest rate rises and general economic stability have both become more favourable since the start of our trading year."

Crest Nicholson warned that build cost inflation remained a "challenge" for the sector, though it continues to expect that the "overall basket of high single-digit percentage build cost inflation will recede during 2023".

It concluded: "While the economic outlook remains uncertain, the housing market has continued to demonstrate its relative resilience. The board remains confidence in Crest Nicholson’s ability to create value through the development of its attractive land portfolio."

Crest Nicholson, which holds its annual general meeting on Thursday, is due to post results for the six months to 30 April in June.