Surrey-based housebuilder Crest Nicholson has identified what it describes as "early signs" of recovery in the UK housing market, following a particularly sluggish 2025. The company reported that inquiries have begun to pick up since the end of last year, offering a glimmer of optimism after a challenging period.
Market Challenges and Financial Performance
The housebuilder delivered a generally downbeat assessment of market conditions throughout 2025, highlighting that the housing market remained sluggish compared with much of the previous decade. Crest Nicholson pointed to several contributing factors, including comparatively high mortgage rates, persistently low consumer confidence, and a notable absence of meaningful government support, all of which combined to depress demand levels.
This difficult environment was reflected in the company's financial results. Crest Nicholson completed the sale of 1,691 new build homes in the year to the end of October, representing a reduction of approximately one-tenth compared with the previous year. Furthermore, the firm's pre-tax profit came in at £26.5 million, which is about 31% less than the prior year and fell below the company's previous guidance range of between £28 million and £38 million.
Signs of Improvement and Cautious Outlook
Despite the recent challenges, Crest Nicholson highlighted a shift in certain forward indicators. The company noted that since Boxing Day, metrics including website visits, inquiries, and appointment conversion rates have shown early signs of improving activity levels. This suggests a potential turning point for market engagement.
The business attributes this nascent recovery to falling mortgage rates and rising wages, which are beginning to help improve affordability for potential buyers. Additionally, Crest Nicholson expressed optimism that government support for housebuilding initiatives should contribute to improving both supply and affordability in the longer term.
However, the company maintained a cautious stance. It warned that weaker market sentiment had persisted into the new year, with demand failing to pick up significantly since the autumn budget. Consumer confidence among UK buyers remains low, despite four interest rate cuts implemented last year.
Corporate Strategy and Restructuring
Looking ahead, Crest Nicholson's chief executive, Martyn Clark, described 2026 as a "transitional year in a difficult market." The firm is focusing on a range of internal "self-help measures" to navigate the ongoing challenges. As part of this strategic adjustment, Crest Nicholson closed one divisional office in December, resulting in approximately 50 redundancies.
The company's full-year results announcement underscores the complex and evolving nature of the UK property sector, where glimmers of recovery must be balanced against persistent structural and economic headwinds.
