Crest Nicholson PLC (LSE:CRST)'s market value took a tumble after it reported trading conditions worsened during the summer, reflecting high inflation and rising interest rates.
In an unscheduled trading update, the housebuilder said sales per outlet per week were 0.25 in the seven weeks to 18 August, half its previous forecast.
Shares slumped 14% as the firm warned it now expects 2023 financial year pre-tax profit of around £50.0 million.
Broker Peel Hunt pointed out this was well below the current £73 million consensus.
The warning weighed on the sector - the top three fallers in the FTSE 100 were Taylor Wimpey PLC (LSE:TW.), Persimmon PLC (LSE:PSN) and Barratt Developments PLC (LSE:BDEV), down 4.0%, 2.7% and 1.8% respectively.
“While pricing has remained resilient in a market with limited supply and few distressed sellers, the economic uncertainty is deterring prospective home movers,” Crest Nicholson said.
Transaction levels across the industry have weakened further, particularly in recent weeks and the company sees no material improvement before the year end.
But it does plan to hold the dividend at 17p.
Talks are underway on several bulk deals with partners which will provide support to volume delivery in future years but Peel Hunt said this would "impact profits as well".
Management is also cutting costs, with the newly created East Anglia division being incorporated into its existing Eastern division with revised boundaries.