Housing market to be hit by rising rates, Crest Nicholson warns

Crest Nicholson said trading during this period had been hit by the fallout from September’s mini-budget last year, when mortgage rates jumped and lenders withdrew hundreds of deals.

This led to “rapidly falling consumer confidence” and “immediately translated into softer demand in the housing market”, it said.

Revenues for the six month period fell to £282.7m, down 22.4% from a year earlier, while pre-tax profits sank 60% to £20.9m.

Despite the poor start, the builder said confidence among buyers had started to return.

However, it said that higher mortgage rates and the end of Help to Buy were preventing some first-time buyers from getting on the housing ladder.

“If interest rates continue to rise, and remain elevated for a sustained period of time, this will undoubtedly exacerbate this issue even further and start to impact demand and confidence again,” it said.

“We continue to call on government to recognise this challenge and provide further support to these potential homeowners.”