Crest Nicholson, the British housebuilder, has warned it now expects to make an annual operating loss of about £10m, reversing an earlier forecast of a £5m to £10m profit, after trading proved weaker than anticipated over the summer. The unscheduled update, the firm's third profit warning since April, cites a "subdued" property market where affordability pressures and competitive pricing have slowed sales, and sent its share price down more than 10% on Thursday. It matters because it underscores the wider strain on UK housebuilders from squeezed buyer affordability and rising costs, at a time when broader economic conditions are also turning less favourable.

Crest now expects to complete between 1,350 and 1,400 homes in the year to 31 October, down from a prior estimate of 1,400 to 1,500, with building material prices still running 3% to 4% higher than normal. The Surrey-based company has cut 50 jobs and closed a divisional office, having already reported a £35.2m pre-tax loss for the six months to April, and is still negotiating "constructive" but delayed changes to its banking covenants. On the plus side, it is cutting debt faster than expected, now projecting net debt of £70m to £90m by October rather than £100m to £120m. The wider outlook has also been clouded by the US-Israel conflict with Iran pushing up oil prices and unsettling bond markets, driving UK mortgage-linked swap rates to a three-year high.