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You can find the current article at its original source at https://www.theguardian.com/business/2016/jun/14/housebuilder-leaving-eu-construction-stephen-stone-crest-nicholson-brexit
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| Housebuilder says leaving EU would harm British construction | Housebuilder says leaving EU would harm British construction |
| (about 1 hour later) | |
| A UK vote to leave the EU would disrupt imports of bricks, timber and kitchens from continental Europe, the boss of the housebuilding firm Crest Nicholson has said. | A UK vote to leave the EU would disrupt imports of bricks, timber and kitchens from continental Europe, the boss of the housebuilding firm Crest Nicholson has said. |
| Stephen Stone, the company’s chief executive, said ceramic tiles from Spain or a Bosch washing machine would be harder and more expensive to obtain. | Stephen Stone, the company’s chief executive, said ceramic tiles from Spain or a Bosch washing machine would be harder and more expensive to obtain. |
| By harming imports of building materials and ending the flow of foreign workers, a UK exit from the EU would slow down construction, worsening the housing crisis. | By harming imports of building materials and ending the flow of foreign workers, a UK exit from the EU would slow down construction, worsening the housing crisis. |
| “As a business, we’d be disappointed if Brexit were to happen,” he said. “This is a period where we are growing as an industry, and it would be a shame to put that at risk.” | “As a business, we’d be disappointed if Brexit were to happen,” he said. “This is a period where we are growing as an industry, and it would be a shame to put that at risk.” |
| During the financial crisis and recession, Crest halved its 800-strong workforce, but it now employs 850 people, including 90 apprentices. Stone said leaving the EU would put the apprenticeship programme at risk because “we would stop recruitment”. | During the financial crisis and recession, Crest halved its 800-strong workforce, but it now employs 850 people, including 90 apprentices. Stone said leaving the EU would put the apprenticeship programme at risk because “we would stop recruitment”. |
| He noted that a lot of building materials were imported: bricks and blocks from Belgium; ceramic tiles, bathrooms and kitchen components from Spain; and white goods come from Spain and Germany. | He noted that a lot of building materials were imported: bricks and blocks from Belgium; ceramic tiles, bathrooms and kitchen components from Spain; and white goods come from Spain and Germany. |
| “We have strong relationships with our European suppliers,” Stone said. “Belgium and Spain would still be keen to trade, but clearly Brexit is going to take a few years to negotiate.” | “We have strong relationships with our European suppliers,” Stone said. “Belgium and Spain would still be keen to trade, but clearly Brexit is going to take a few years to negotiate.” |
| The pound is expected to fall sharply if next week’s referendum results in a leave vote. This would increase the cost of building materials, bathrooms and kitchens, according to Crest’s finance director, Patrick Bergin. But he highlighted the “disturbance factor” as the main risk. | The pound is expected to fall sharply if next week’s referendum results in a leave vote. This would increase the cost of building materials, bathrooms and kitchens, according to Crest’s finance director, Patrick Bergin. But he highlighted the “disturbance factor” as the main risk. |
| Crest’s comments came as opinion polls continued to shift towards a leave vote. Economists at Berenberg Bank rate the probability of an exit at 42%, compared with 20% in late May. | Crest’s comments came as opinion polls continued to shift towards a leave vote. Economists at Berenberg Bank rate the probability of an exit at 42%, compared with 20% in late May. |
| Stone said: “As a prudent business we would probably pause. It means restricting investment in land and in people. We would review it in three or six months’ time.” | Stone said: “As a prudent business we would probably pause. It means restricting investment in land and in people. We would review it in three or six months’ time.” |
| Like others in the industry, Crest warned of shortages of construction workers if the leave campaign prevailed. The industry has always relied on foreign workers to plug skill gaps – from Irish labourers to Polish plumbers. In some areas, such as concrete frame construction in Suffolk and Norfolk, an estimated 40% of workers come from eastern Europe. | Like others in the industry, Crest warned of shortages of construction workers if the leave campaign prevailed. The industry has always relied on foreign workers to plug skill gaps – from Irish labourers to Polish plumbers. In some areas, such as concrete frame construction in Suffolk and Norfolk, an estimated 40% of workers come from eastern Europe. |
| Crest reported a 25% rise in profit before tax to £72.6m in the six months to 30 April. Revenues increased 22% to £408.1m. Crest built 1,206 homes, 7% more than a year earlier. It raised its half-year dividend by 42% to 9.1p a share. | Crest reported a 25% rise in profit before tax to £72.6m in the six months to 30 April. Revenues increased 22% to £408.1m. Crest built 1,206 homes, 7% more than a year earlier. It raised its half-year dividend by 42% to 9.1p a share. |
| Related: EU referendum: leave takes six-point lead in Guardian/ICM polls | Related: EU referendum: leave takes six-point lead in Guardian/ICM polls |
| However, Stone said the company was having to work much harder to sell homes priced between £750,000 and £1.5m in central London, blaming Brexit fears and affordability issues. Prices have been stagnating for a year after a period of rapid growth. | However, Stone said the company was having to work much harder to sell homes priced between £750,000 and £1.5m in central London, blaming Brexit fears and affordability issues. Prices have been stagnating for a year after a period of rapid growth. |
| Jefferies analyst Sam Cullen said: “Crest Nicholson has become the first UK housebuilder to voice concerns and to disclose facts suggesting a London slowdown. Overall trading (the walk) remains robust, but the talk was weighted towards London, possible Brexit and bends in the road. | |
| “In the event of a leave vote they may stop buying land for three months and then re-assess. If the ‘bend’ in the road is more severe than they currently think they will push the brake pedal somewhat harder.” | “In the event of a leave vote they may stop buying land for three months and then re-assess. If the ‘bend’ in the road is more severe than they currently think they will push the brake pedal somewhat harder.” |
| Crest, like others, is pushing into the “build to rent” market. The company won planning permission for its first purpose-designed, suburban private rental sector scheme. It is building 227 homes in partnership with fund manager M&G at Faygate near Gatwick airport. Stone said the project was inspired by the American family housing model and that the company was considering a similar scheme in Bristol. | Crest, like others, is pushing into the “build to rent” market. The company won planning permission for its first purpose-designed, suburban private rental sector scheme. It is building 227 homes in partnership with fund manager M&G at Faygate near Gatwick airport. Stone said the project was inspired by the American family housing model and that the company was considering a similar scheme in Bristol. |