Persimmon ‘on track’ to build 10,500 homes this year as property market recovers
Persimmon said it is on track to build between 10,000 and 10,500 properties this year, in the latest signal of green shoots emerging in the market despite interest rates remaining high.
Housebuilder Persimmon said it is on track to build between 10,000 and 10,500 properties this year, in the latest signal of green shoots emerging in the market despite interest rates remaining high.
On Thursday, the publicly listed property firm said its current forward sales position reached £1.75bn in the first quarter, ahead of last year’s figure of £1.69bn.
New home completions totalled 1,027, around 100 homes less than what was recorded in the same period the year before.
Its private forward order book is up 18 per cent on the prior year to £1.14bn with the embedded private average selling price ahead of the position at the start of the year.
Dean Finch, group chief executive, said: “Persimmon has had a good start to the year and is on track to deliver growth in completions to between 10,000-10,500 for the full year. Our first quarter performance was in line with expectations, and we saw an improvement in sales rates alongside firm pricing.
“Trading over recent weeks has been encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year. Overall, our private forward order book is up 18 per cent on the prior year with the embedded private average selling price ahead of the position at the start of the year.”
He added: “We are making good progress in expanding our outlet network and we will continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings into active developments.”
Persimmon has been one of many company’s bruised by a slowdown in the property market due to high interest rates and a squeeze on consumer’s personal finances.
Oli Creasey, property analyst at Quilter Cheviot, said: “While the sales rate is moving in the right direction it is still around a third lower than the rates achieved in Q1 2022 when interest rates were significantly lower.
“The other green shoot visible is a six per cent increase in the average sale price within the forward order book, which has increased significantly since the end of the year. This is an encouraging improvement, although it will be some time later this year when these sales are converted.
He added: “Management has reiterated its guidance of around 10,000-10,500 completed homes this year, a marginal increase on 2023, but some way below 2022. Commentary suggests that volumes and sale prices are expected to accelerate in the second half of the year, again similar to the message from Taylor Wimpey’s executive team.
