McCarthy sees signs of slowdown

RETIREMENT homes specialist McCarthy & Stone has noticed the first signs of a decline in demand for its flats and houses from the rich retired of the South-East, even though year-on-year sales and forward sales in the rest of the country are currently ahead of last year.

Chief executive Keith Lovelock attributes the downward trend to the 'financial acumen' of sophisticated pensioners in the South-East, who have reacted swiftly to the events of 11 September and a weakening economic outlook for Britain.

Traditionally setbacks to the housing market begin in the South-East.

Lovelock said: 'Over the past four years we have positioned ourselves to be able to respond quickly to changes in market conditions.' He forecasts that the current year may be 'difficult'.

The year to August saw more record results with pre-tax profits up 13% to £60.5m and earnings per share rising 12% to 38.8p.

The average selling price of a retirement home increased by 11% during the year to £99,000.

The total dividend is lifted 11.5% to 9.7p. The shares fell 9p to 258 1/2p.