Jobs threat at Crest Nicholson amid subdued demand for new homes

Housebuilder Crest Nicholson has signalled it could cut jobs soon as subdued demand for new homes hits business.

The company said it would ‘align headcount’ in its divisions to their ‘expected level of output’ in the next financial year.

Chief executive Peter Truscott said: ‘Given the challenging trading backdrop, the group has acted decisively in streamlining its operations to align our cost base with the operating environment. These are difficult decisions but will ensure the group is well positioned to recover strongly as more supportive market conditions return.’

Builders have been hit by a slowdown in demand for homes as high mortgage costs put buyers off. Firms have also been hit by the rising cost of materials and wages.

Crest said that over the past ten weeks, each of its outlets has sold an average of 0.39 homes per week, but added that sales were now back on ‘an upward trend’.

Truscott said: ‘We expect the housing market will remain challenging into 2024.’