Housebuilders Watkin Jones and Inland Homes hit by higher costs

British property developers Watkin Jones and Inland Homes have revealed significant slumps in earnings amid soaring costs and weaker sales volumes.

Student accommodation builder Watkin Jones saw pre-tax profits plunge by 64 per cent to 18.4million for the year ending September 2022.

Though the group achieved record forward sales totalling 900million, while revenue was only moderately down on the prior 12 months, trading was badly affected by heightened market volatility towards the end of the period.

Two forward sales were deferred in the wake of September's mini--budget, which led to mortgage rates spiking and a sell-off in governments debt.

Watkin Jones was also hit by a 30.4million charge related to the Building Safety Act, which compels housebuilders to finance the removal of unsafe cladding and make other fire safety improvements to residential developments.

Meanwhile, Inland Homes shares plummeted by a third after the Beaconsfield-based company admitted to breaching covenants with two lenders.