UK's Crest Nicholson could build up to 11% fewer homes this fiscal year

(Reuters) - British housebuilder Crest Nicholson said on Tuesday it could build up to 11% fewer homes in fiscal 2024 amid persistent tough conditions in the housing market.

The British housing market saw signs of stability at the start of 2024 on easing mortgage rates after battling subdued demand for most of last year, but the delay by the Bank of England in lowering interest rates and incessant macro-economic concerns have tempered hopes of a better-paced recovery.

Surrey-based Crest Nicholson said open market year-to-date sales rate per outlet per week was 0.44 based on 46 outlets, and that improved to 0.52 in the last eight weeks to March 15.

The company added that sales prices are expected to remain stable in the 2024 financial year.

Crest Nicholson, which focuses on suburban areas outside London and in southern England, said it expects to build between 1,800 and 2,000 homes in the year ending Oct. 31, compared with 2,020 homes a year earlier.

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)