In an update to markets this week, the company said it is trying to “trade out” of lower margin sites, after warning on earnings because a high proportion of the homes it built this year were classed as affordable.

Chief executive Martyn Clark promised “a year of transition” for the company, adding: “We will focus more on private sales and prioritise value over volume to enhance returns and margins.”

Surrey-based Crest Nicholson built 1,873 homes in the year ended October 31, of which 45% were affordable – just under the UK Government’s target of 50%.

The figure is down on the 2,020 homes it built the year before, with Crest citing “affordability concerns” hitting private open market sales.

The firm forecast that annual profit for its most recent financial year, which ended in October, will be at the lower end of previous forecasts.

Mr Clark was optimistic about the future of housing in the UK, although he said that 2024 has been a “challenging year” for the sector due to “both internal and external factors”, with private open market sales volumes continuing to be impacted by ongoing affordability concerns.

Crest had been set for a takeover by Bellway earlier this year, but the larger housebuilder walked away at the last minute.

“Encouragingly, the broader economic landscape is becoming more favourable, with a more benign interest rate environment and increased government support to improve the planning process to deliver their ambition of increasing supply of much needed homes in the UK,” he said.