Crest Nicholson hit with £15m bill after finding build defects on four more sites

Crest Nicholson has found build defects on another four sites which it said could cost it up to £15m to put right.

In a trading update, the housebuilder said it had discovered the problems at the unnamed schemes in the past few weeks on jobs dating back to before 2019.

It said: “The group has become aware of certain build defects predominantly on four sites that were completed prior to 2019 when the group closed its regeneration and London divisions. These sites will require remediation over the next three years at an estimated cost of up to £15m.”

It has brought in outside consultants to run the rule over the jobs in order to “provide greater assurance on the adequacy of current provisions”.

In a note Investec said: “The appointment of third-party consultants to provide greater assurance on the adequacy of current provisions will unnerve the market.”

Crest has already had to shell out an extra £11m in ‘incremental build costs’ relating to its 239-home Brightwells Yard scheme in Farnham, Surrey, after it was hit by delays.

In today’s update, it said: “Construction at the Farnham development and other legacy sites which are still being completed is progressing largely as planned.”

Elsewhere, the firm said it expects to complete 1,800 to 2,000 homes in the year, compared to 2,020 the previous year.