Crest Nicholson built 1,691 homes last year, which was at the lower end of the housebuilder’s 1,700 to 1,900 target - Chris Ratcliffe/Bloomberg A major housebuilder is preparing to cut jobs and shut some operations as Budget uncertainty takes its toll on the housing market. Crest Nicholson, which built almost 1,700 homes last year, said it was preparing to close one of its regional offices in a move that will put around 50 roles at risk. The decision comes amid what Martyn Clark, chief executive of Crest ...

The UK’s Ministry of Housing Communities and Local Government has confirmed a package of measures designed to boost housebuilding in London following a collapse in new development. https://t.co/mFdXQybe1Z ...

UK construction firms are suffering their longest downturn since just before the pandemic after a fresh slump in housebuilding https://t.co/FCcjvO0JWv ...

Core Viewpoint - Shares in FTSE 100-listed Persimmon fell 2.7% despite reporting an increase in sales and profits for the first half of the year [2] Financial Performance - Housing revenues increased by 12% to £1.31 billion in the first half of the year [2] - Total completions rose by 4% to 4,605 homes, with average selling prices up by 8% to £284,047 [2] - Underlying operating profit improved by 13% to £172 million, driven by increased volume and operational discipline [4] - Pre-tax profit remained flat year on year at £146.7 million [4] - Statutory revenues rose by 12% year on year to £1.5 billion [4] Market Conditions - The company noted improvements in buyer affordability due to interest rate cuts, looser lending rules, and real term pay rises [3] - However, these improvements were offset by increases in council tax, national insurance, stamp duty, and energy bills, along with macroeconomic uncertainty affecting consumer sentiment [4] Sales and Completions Outlook - The firm is on track to achieve total completions of 11,000-11,500 properties for the full year and 12,000 in 2026 [3] - The private sales rate (excluding bulk sales) increased to 0.62 from 0.59 in the first half of 2024 [4] - Net private sales in the five weeks since the end of June rose to 0.61, up from 0.55 in the same period of 2024 [7] Order Book and Future Positioning - The private forward order book increased by 11% year on year to £1.25 billion, with an average sales price of £292,800, up 1.3% year on year [8] - Including partnerships, the order book is 9% higher at £1.86 billion [8] - The company is approximately 80% secured on private completions and fully secured on partnerships completions for the full year [8] Analyst Commentary - Analysts noted that Persimmon is making steady progress despite affordability pressures and macroeconomic uncertainty [8] - Vertical integration, increased in-house production, and targeted incentives are helping to protect margins [8]

Industry Performance - UK construction firms experienced the sharpest output plunge in over five years [1] - The decline was driven by a slump in housebuilding [1]

Core Viewpoint - Barratt Redrow shares experienced a significant decline due to warnings about legacy issues impacting profits and lower-than-expected home completions [2][4] Financial Performance - The company expects to incur additional legacy property liabilities of £248 million, with £98 million related to fire safety and reinforced concrete frame issues [3] - Adjusted pre-tax profit is predicted to meet market expectations after stripping out these adjustments [3] - Cost synergies of £69 million have been achieved from the Redrow acquisition, with a target of total savings of £100 million [3] Completions and Forecast - Total home completions for the year were 16,565, down from 17,972 in the previous year and below the forecast of 16,800-17,200 [4] - For the current financial year, total completions are projected to be between 17,200 and 17,800, including 600 from joint ventures [5] - The medium-term target remains at 22,000 completions per year [5] Cash Position and Share Repurchase - The company ended financial 2026 with net cash of £772 million, a decrease from £868.5 million in the prior period but above expectations [5] - Plans to repurchase up to £100 million of shares by the end of the current financial year have been announced [5] Market Outlook - The CEO noted a solid performance despite a challenging market, with adjusted profits aligning with market expectations [6] - There is a long-term structural under-supply of housing in the UK, which may support future demand [7] - Analysts have mixed views, with some noting that sales rates are improving despite hurdles like increased stamp duty and slow planning approvals [8]