Published on : Wed, 23 Nov 2005 14:32GMT
by : Richard Byers

LONDON- Housebuilder Crest Nicholson PLC has announced that the trading for the current year was in line with expectations and that it was confident of the housing market remaining the same for the next year as well.

"The housing market continues to be stable but customers remain cautious. In 2006, we expect open market housing market conditions to be similar to 2005,"the company said in a statement. The company also said that it would begin the New Year with forward sales 13 percent higher than those recorded in the previous year.

Crest Nicholson stressed that the fundamentals of the housing market remained good and that these were aided by the low level of unemployment as well as a continuing shortage of housing supply prevailing in the country, more particularly in the areas that it operates.

Crest Nicholson mainly plys it's business in Southern England and the Midlands. Open market housing completions were 3 percent higher in the current year; the company said adding that the completions of affordable housing sold to associations were well ahead of what was predicted in the interim announcement.

Crest Nicholson had predicted 550 completions, when it fact it was able to reach 600 completions in 2005. This figure is lower than what was recorded in 2004. "Trading for the full year 2005 has been in line with our expectations. We are pleased with our volume performance in both open market and affordable housing," Chief Executive Stephen Stone said in a statement.

In the backdrop of this strong showing, Crest shares closed at 411 pence on Tuesday. This figure values the group at 449 million pounds.