Crest Nicholson shares plunged 38% after the housebuilder trimmed its earnings outlook amid heightened geopolitical risk. The company cited the Iran conflict, rising energy costs and the prospect of a prolonged high‑interest‑rate environment as reasons for the downgrade. The move dragged the FTSE 250 housing index lower, highlighting sector pressure.

Management now forecasts 1,400‑1,500 home completions this year, down from an earlier 1,550‑1,700 range, and expects land‑sale proceeds of about £40 million, a sharp cut from the prior £75‑100 million estimate. Projected earnings have been slashed to £5‑15 million, representing an 89% fall from the consensus £43.7 million. The firm is in the early stage of seeking temporary covenant relief as it navigates a tighter credit market.

Analysts at RBC note lenders will likely keep funding but at higher cost, while Investec warns the balance sheet and cash generation will dominate management’s agenda. Peers such as Berkeley and Barratt Redrow are also scaling back land purchases, tightening supply and complicating the government’s pledge to deliver 1.5 million homes this parliament. Crest Nicholson’s immediate priority is preserving liquidity.