Brexit has been a “passion killer” at the more expensive end of the housing market, the boss of Crest Nicholson admitted on Tuesday.
The housebuilder is pulling out of a struggling central London property market, where sales rates have broadly halved amid high stamp duty and affordability constraints.
Discretionary buyers of the firm’s bigger houses in the home counties are also sitting on their hands, according to chief executive Patrick Bergin. “We have seen the market steady but Brexit has been a bit of a passion killer at the higher price points,” he said.
Crest’s revenues rose 9% to £1.14 billion in the year to October 31 but pre-tax profits were off 15% to £176.4 million.
Bergin expects the market to continue to be “difficult” in the approach to Brexit day on March 29.
On the threat of a No Deal, he said: “We have done the sensible thing, speaking to our supply chain so our supply of materials is as certain as it can be.” The company does not expect an immediate impact on its labour force although Bergin added there were worries over the “impact on consumer confidence”.
Shares crept up 11.2p, or 3%, to 352.8p. The group held the dividend at 33p.
