Crest Nicholson forecasts £10 million operating loss as UK housing demand weakens

British housebuilder Crest Nicholson said on September 3, 2026, that it expects to record an operating loss of about £10 million for the financial year ending October 31 after demand weakened during the summer.

The projection reverses the company’s previous forecast of an operating profit between £5 million and £10 million. Crest Nicholson also lowered its expected full-year home completions to between 1,350 and 1,400, from an earlier range of 1,400 to 1,500.

The company said its sales rate had slowed over the previous six weeks compared with the first half of the year. It attributed the decline to affordability constraints and competitive pricing in a subdued British property market. Average building-material costs were also running about 3% to 4% higher.

Crest Nicholson has closed one divisional office and cut 50 jobs in recent months. It reported a pre-tax loss of £35.2 million for the six months through April 2026.

The company nevertheless expects year-end net debt of £70 million to £90 million, an improvement on its earlier estimate of £100 million to £120 million. It said talks with lenders over revised banking covenants remained constructive, although they were taking longer than anticipated.

Shares in the company fell by more than 10% on the morning of the announcement. Chief executive Martyn Clark said the timing of a wider housing-market recovery remained uncertain while the group focused on liquidity and operational performance.