Crest Nicholson has reported “early signs” of a recovery in the UK housing market, despite warning over persistently low demand and after missing its profit expectations for the year.
The Surrey-based housebuilder said the market remained sluggish throughout 2025 compared with much of the previous decade, with high mortgage rates, low consumer confidence and a lack of meaningful government support contributing to depressed demand.
Pre-tax profit came in at £26.5 million, below the company’s guidance of £28 million to £38 million, while home completions fell by about 10 per cent to 1,691. Crest also flagged “material uncertainty” over its ability to continue as a going concern if trading worsens further, noting that it could breach banking covenants by April in a “severe but plausible” scenario.
However, the company noted that since Boxing Day, forward indicators including website visits, inquiries and appointment conversion have shown improving activity levels. Lower interest rates and government support for housebuilding should help affordability and supply in the longer term, it added.
Chief executive Martyn Clark described 2026 as a “transitional year in a difficult market”, with the firm focusing on “self-help measures” to get through. Crest closed a divisional office in December, resulting in about 50 redundancies.
