Crest Nicholson faces £15m defect remediation bill

Crest Nicholson has announced it will spend about £15m to resolve defects on new-build sites.

In a trading update published yesterday (19 March), the housebuilder said that since last November it has become aware of the need to remediate faults on four sites completed before 2019.

The board appointed third-party consultants to assess the company’s provisions around the affected sites, along with other sites completed before 2019.

The news comes two months after the Surrey-based builder reduced its profit forecast for the financial year ending October 2023 for the second time in six months, noting an exceptional charge of £13m from a legal claim related to fire damage.

The housebuilder said it would provide an update on the remediation effort in its interim results in June.

Crest Nicholson also said it expected to complete fewer homes in the 2024 financial year than in the previous financial year, down from 2,020 to between 1,800 and 2,000.

The update said: “The planning system continues to be challenging. Our strong land portfolio with several quality sites acquired last year places us in a favourable position to mitigate planning delays and support future outlet growth.”

It said it expected sales prices to remain stable for the 2024 financial year.

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