Crest Nicholson seeks banking relief as war hits market

The British homebuilder CREST NICHOLSON HOLDINGS has confirmed it is in the early stages of seeking a relaxation of its banking commitments as the housing market faces mounting pressure. The company cited the ongoing conflict involving Iran as a primary driver of market stress, which has impacted operations across the United Kingdom. Crest Nicholson had previously cautioned in January that a severe downturn could lead to a breach of its interest-cover covenant as early as April, and it is now engaging with lenders to address these financial obligations. The firm noted that the conflict in the Middle East has contributed to rising building costs and the potential for interest rates to remain higher for longer, which has subsequently reduced new inquiries and visitor traffic at its housing developments. As a result, the company has lowered its sales volume forecast for the fiscal year ending October 2026 to a range of 1,400 to 1,500 units, down from the earlier projection of 1,550 to 1,700 units. Furthermore, the developer now expects annual land sales to total approximately 40 million pounds ($54.08 million), a sharp decrease from the previously estimated range of 75 million to 100 million pounds.