ii view: demand boost at housebuilder Crest Nicholson

Five-month trading update to late March

ii round-up:

Housebuilder Crest Nicholson Holdings (LSE:CRST) today reported improving customer demand, with no impact from events in the Middle East seen yet and guidance for the full year remaining unchanged. 

Encouraging levels of customer enquiries had helped get the sales rate up to 0.64 for the 10 weeks to 20 March from 0.61 per week per outlet during the financial year ended late October 2025. 

Shares in the small-cap firm rose 10% in UK trading having come into this latest news down by close to a third so far in 2026. That’s similar to fellow home builders Barratt Redrow (LSE:BTRW) and Bellway (LSE:BWY). The FTSE Small Cap index is down around 3% year-to-date. 

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Previously a volume housebuilder, Crest has moved to focus on mid-premium home development under a strategy to assist profits. 

A divisional restructuring announced in November has now been completed, with improved processes and governance today driving increased efficiency. 

Progress in reshaping the land bank had continued with one further land disposal from a larger site made so far in this financial year.

Investment in the group’s sales capabilities such as digital tools is ongoing, while the company’s Five Star House Builders Federation status has been maintained.

First-half results to 30 April are scheduled for 11 June. 

ii view:

Started in 1963, Crest today operates primarily across the South of England and the Midlands. Build completions of 1,691 during 2025 was down from 1,873 in 2024 and 2,020 the year before. Now under former Persimmon (LSE:PSN) executive Martyn Clark, Crest is targeting build completions of over 2,300 by the fiscal year 2029.

For investors, the war in the Middle East and resultant soaring energy prices now generate high uncertainty regarding future inflation and both interest and mortgage rates. Raised energy prices could increase the cost of producing materials such as bricks, pushing up overall build costs. Stretched UK government finances now offer reduced room for sector assistance, as has happened in the past, while Crest’s own specific difficulties have seen build completions falling in recent years.  

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On the upside, signs of improved customer demand is promising. The new chief executive brings nine years of senior experience from rival Persimmon. Crest was previously subject to a takeover approach, with any future underperformance potentially raising that prospect again. Meanwhile, the UK government continues to promise an easing of planning regulations. 

For now, and while Crest remains a stock for higher risk investors, signs of performance improvement are certainly encouraging and will be something to monitor for those interested in the housebuilding sector. 

Positives: 

• Rejuvenated strategy
• Previous takeover approach

Negatives:

• Build completions falling
• Highly uncertain interest rate outlook

The average rating of stock market analysts:

Buy