Costs creep up at Crest Nicholson

That said, it reiterated its medium-term target of achieving £1.4bn of sales and 4,000 homes per year by the 2019 financial year. Unit completions were down from a year earlier at 1,064, mainly as a result of a reduced first-half weighting from completions within the private rental sector. Excluding these, completions were broadly flat at 1,021.

Investing in higher-quality locations helped to lift average selling prices by 12 per cent to £418,000, excluding privately rented homes, while operating margins were maintained at 19.1 per cent. Sales per outlet per week on private completions were down from 0.87 to 0.81, although this was due to a change in the sales mix towards higher-value properties.

Forward sales rose by 4 per cent to £540m, helped by an 11 per cent rise in outlet numbers, while the second half will benefit from a new division opening in the Midlands. And despite all the uncertainty generated by Brexit, cancellation rates held steady at 10.4 per cent. Land values remained benign, and 1,092 plots were bought in the first half across 11 sites, with a gross development value of £418m. A further 1,196 plots were converted from the strategic land bank, which in turn was replenished with an additional 1,101 plots.

Build cost inflation remained well covered by higher selling prices, although chief operating officer Patrick Bergin conceded that, as house price inflation slows, there will be a bit of compression in the level of cover.

Analysts at Peel Hunt are forecasting adjusted pre-tax profits for the year to October 2017 of £205m (from £195m in FY2016).