UK's Crest Nicholson warns of rise in building costs due to Ukraine crisis
Reuters
Published Mar 22, 2022 07:26
Updated Mar 22, 2022 09:42
(Reuters) - Crest Nicholson (LON:CRST) Holdings Plc on Tuesday became the first listed British homebuilder to flag a potential increase in input costs due to surging energy costs and raw material supply disruption caused by the Russia-Ukraine conflict.
Sanctions on Russia following its invasion of Ukraine have triggered a supply crunch and sharp rise in prices of commodities including key building materials such as steel and timber.
Crest Nicholson, which focuses on suburban areas outside London and in southern England, said it was able to offset current cost increases due to strong house prices.
The company said housing market conditions remained favourable and its order book was over 84% covered for the fiscal 2022 revenue as of March 18, up from the 63% it had reported during its annual results in January.
UK housebuilders tackled the COVID pandemic better than many other sectors, thanks to red-hot house prices, underpinned by strong, persistent demand in a heavily undersupplied market as well as increased preference for larger homes suitable for remote work.
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Written By: Reuters
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