Crest Nicholson says market still strong despite Q3 slowdown

16th Sep 2014 07:48

Housebuilder Crest Nicholson has, like its peers, seen a "slight moderation" in sales rates over the last few months but still enjoyed a strong third quarter and was fundamentally upbeat on the sector's outlook."Strong purchaser demand for new homes continues to underpin a buoyant housing market," said chief executive Stephen Stone.The company said it is well positioned to meet its volume targets for the year ending 31 October.As of 5 September, all reservations required for legal completions in the full fiscal year were secured and year-on-year volumes expected to be up 15%."In line with normal seasonal trends, the sales environment has shown a moderate slowing in recent months," the group said, comparing trading with a very strong period last year in the aftermath of the launch of Help to Buy.As such, open-market reservation rates since the end of the first half (1 May) have averaged 0.87 per outlet each week, down 8% year-on-year.Total forward sales were up 11% on last year at £348m, but forward sales for future years were down 5% at £138m as the company decided not to release product for sale until it was at a more advanced stage of construction.Looking ahead, the company said: "Whilst there has been a slight moderation of sales rates in the last few months, rates of sale remain significantly above historic norms."As for the land market, over the year-to-date the gross development value of its short-term pipeline has increased 21% to £4.69bn.All land required to meet next year's forecasts has already been secured with planning in place.Shares in the company were down 1% to 401.1p at 08:30 on Tuesday.