Crest Nicholson's shares slid three per cent this morning after the FTSE 250 housebuilder revealed it increased average selling prices of its homes by 12 per cent.
In a trading update, the Surrey-based group said the average selling prices of its houses hit £418,000 in the six months to 30 April.
Crest expects revenue growth of 10 per cent in the year to the end of October amid a market it described as ll “robust".
However, the number of homes it built fell slightly to 1,064 in the first half of this financial year compared to 1,206 last year.
Why it's interesting
Crest has increased its prices despite despite a slowdown in house price growth in London and the rest of the UK.
According to ONS' house price index released today average UK house prices increased 4.1 per cent in the year to March 2017, down from 5.6 per cent in the year to February 2017.
House prices in London recorded the second-lowest annual growth at 1.5 per cent. However, London continues to be the region with the highest average house price at £472,000
What Crest Nicholson said:
Stephen Stone, chief executive, Crest Nicholson, said:
“Having delivered on our stretching 2016 target of £1bn sales, the business has taken the first steps to establish a new division in the Midlands, is building momentum in forward sales for the year and pursuing the disciplined expansion of the Group’s land pipeline for the future.
"Crest Nicholson has the solid foundations for another year of growth and remains firmly on track to meet our ambitious 2019 targets of £1.4bn sales and 4,000 units.”