Persimmon is on track to deliver completions of around 10,500 homes for its full year - up from last year’s 9,922, according to its most recent trading update, adding that it was assessing the implications of last week’s Budget on costs, including the impact of employer national insurance increases.
During the period since the 1st of July 1, the housebuilder’s private homes delivery rose 3% to 1,267, with overall homes delivery decreasing slightly to 1,416 against the 1,439 of the equivalent period in 2023. Its net private sales rate per outlet has also improved during the same period by 37% to 0.70 - 0.61 excluding bulk sales. Net year to date private reservations since the 1st of January are up 24% on last year.
The housebuilder said customer interest remained “good” across all its regions, with affordability constraints easing thanks to initial reductions in interest rates. Persimmon also noted a “greater availability” of more than 90% loan-to-value mortgage products than a year previously.
Persimmon added that while it remained optimistic about its growth prospects, “the quantum and timing of future interest rate changes is uncertain."
Dean Finch, Persimmon’s group CEO said: “Visitor numbers and enquiries remain strong and sales rates continue to be well ahead of the prior year. Our forward order book is up 17% on the prior year with the private average selling price robust.
“We continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings into active developments."
