However, according to data provided in the firm's latest trading update, Persimmon is now on track to achieve 14,500 to 15,000 legal completions this year.
With the drop in completions, group revenue fell 8% to £1.69bn against 2021’s half year. Pre-tax profit decreased 8.4% to £439.7m.
Meanwhile, Persimmon’s new housing gross margin nudged up to 31% from last year’s 30.9%. The firm said this was due to the business effectively managing cost inflationary pressures.
The average selling price of Persimmon’s homes rose 4% to £245,597. It cited continuing strong demand for its homes, with its average private sales rate for the half year up 1% year-on-year.
The business is set to increase its active outlets by 10% by the year-end, opening 60 in the first half. Around 70 are forecast to open in the second half, although Persimmon noted its ongoing planning delays as a risk. It is rebuilding its outlets after a pause on land buying three years ago.
With planning challenges, the firm also pointed to the nutrient neutrality challenge and the government’s attempt to ease it. The firm stated that the government's recent statement on the issue does not appear to offer the short-term clarity the industry hoped for, adding "so we continue to see around 1,500 of our plots affected, a number that is likely to grow until a resolution is found."
But its guidance for full-year legal completions remained intact, it said. It had some exciting new sites approaching at “industry-leading” margins. It also said it had expanded production in its own brick tile and timber frame factories – during the half year, 35% of the homes delivered used timber frames.
Dean Finch, Persimmon’s group CEO, said: "Persimmon continues to perform well. We are making important progress in quality, service, land investment opportunities and efficiencies to build an even stronger business while continuing to deliver the strong financial returns that Persimmon is renowned for.
“We are stepping up proactive engagement with local authorities, enhancing our approach to developing attractive communities and raising the bar on design to help mitigate planning challenges.”
