Review Mortgage Lenders

Crest Mortgage Company

Mountain Crest Mortgage 2008

UPDATE 2-Crest Nicholson cuts margin forecast on pricing pressure, shares tumble

* Sees FY operating margin at 18 pct

* Shares fall 14 pct to 1-1/2 yr low

* Labour wage inflation, higher material cost driving build cost, CEO says (Adds CEO comments, detail on construction costs, shares)

By Radhika Rukmangadhan

May 16 (Reuters) - British housebuilder Crest Nicholson Holdings Plc lowered its full-year operating margin forecast to the bottom end of its previous range on Wednesday, blaming rising construction costs and flat home prices.

The move sent shares in the company, which sells residential properties in London and elsewhere in the UK, tumbling as much as 14 percent to their lowest level since November 2016.

Rising wages in the UK construction sector due to a tight supply of skilled labour, along with higher building material costs, have hurt margins, Chief Executive Patrick Bergin told Reuters.

“If you are not getting sufficient price inflation to cover that cost inflation, then margins are going to degrade and that’s what we are seeing here,” he said after the company released a six-month trading update.