Slowdown in UK’s home market now hit the profitability of construction companies, Bloomberg reports.

Pretax profit of Crest Nicholson Holdings Plc declined in the second quarter. As a results, the company announced that it is going to leave central London within next 18 months due to depressed market for houses valued above 1 million pounds ($1,3 million). The group uses the flat pricing, while construction costs are rising. It negatively influences the profitability.

There are serious changes observed on London’s housing market. Prices are falling despite increased demand for houses valued below 600000 pounds that is result of government's interest-free loan program. Cost of houses in UK’s capital dropped by 2,5% in April compared with the year earlier. London so far is the only region in the country that shows decline in real estate prices.