CRACKS in Britain’s property sector deepened yesterday after one of its biggest house- builders warned of a drop in profits.
Crest Nicholson slashed profit forecasts, saying market conditions had “worsened” due to “high inflation and rising interest rates”.
It said first-time buyers were being hit particularly badly as they were no longer able to claim Government support through Help to Buy and couldn’t rely on property equity to fund their purchase.
Shares in Crest Nicholson slumped by 10.6 per cent, or 20.56p, to 173.44p after warning that it would only make £50million of profits this year, compared with its guidance of £73.4million.
The warning alarmed investors in the sector and sent shares in rival housebuilders Taylor Wimpey, Berkeley Group, Redrow, Persimmon, and Barratt Developments lower.