Housebuilder Crest Nicholson Holdings plc (LON:CRST) said it is on track to deliver 10% full year revenue growth after achieving an increase in average selling prices.
Average selling prices in the first six months of the year rose 12% to £418,000 as the company invested in “high quality locations”.
This came despite a slowdown in house price growth across the UK, reflecting Brexit uncertainty and an increase in stamp duty on second homes and buy-to-let properties. Halifax reported a decline in house prices in the three months to April for the first time since 2012.
However, housebuilders continue to benefit from strong demand and low borrowing costs with positive trading statements from Persimmon and Barratt Developments in recent weeks.
Crest said its completions in the first half dropped to 1,064 from 1,206 the same time a year ago. This was due to a lower first half weighting from the timing of completions for the private rented sector.
Forward sales for the 2017 year, including year-to-date completions, were 5% ahead of the same period last year as of April.
Chief executive, Stephen Stone, said the company should meet its 2019 targets of £1.4bn sales and 4,000 units. He added the business would establish a new division in the Midlands in the second half after delivering its 2016 target of £1bn sales.
“The market is underpinned by strong demand with good mortgage access and support from the Help to Buy Scheme,” the company said.
“Moderate sales inflation should help to maintain affordability in the near term and combined with moderate build cost inflation should help underpin margins.”
Shares climbed 0.38% to 2,403.00p in morning trading.