Falling demand: Housebuilder Crest Nicholson has indicated it could cut jobs
Housebuilder Crest Nicholson has indicated it could soon cut jobs as weak demand for new homes hits the economy.
The company said it will align workforce levels in its divisions with their “expected production levels” in the next fiscal year.
Chief executive Peter Truscott said: ‘Given the challenging trading environment, the group has acted decisively in streamlining its operations to align our cost base with the operating environment. These are difficult decisions, but will ensure that the group is well positioned to recover strongly when market conditions improve again.”
Builders have been hit by a slowdown in housing demand as high mortgage costs deter buyers. Companies have also been hit by the rising costs of materials and wages.
Crest said each of its outlets has sold an average of 0.39 homes per week over the past ten weeks, but added that sales are now “on an upward trend again”.
Truscott said: ‘We expect the housing market to remain challenging into 2024.’