Crest Nicholson has said its annual profit will be at the lower end of its expectations, as its chief executive pledged a “year of transition” in 2025 to focus more on private sales.

The housebuilder, in an update for the year to 31 October, said its adjusted pre-tax profit will be towards the bottom of its previously expected £22m to £29m range.

It said this is due to a higher proportion of affordable homes delivered, and also due to the fact it is continuing to “trade out of low margin sites”.

Martyn Clark, chief executive at Crest Nicholson, said in a statement that 2025 will be a “year of transition”. He said: “We will focus more on private sales and prioritise value over volume to enhance returns and margins.”

He added the company was “well-positioned with sufficient land with full planning permission” to support its planned outlets and volumes.

Clark said the housebuilder’s performance in 2024 has been affected by internal and external factors, with private open market sales volumes hit by “ongoing affordability concerns.”