Persimmon on track to deliver 10,500 homes as house prices hold firm
Persimmon's performance has been propped up by improved customer sentiment as interest rates began to reduce and affordability improved.
Housebuilding giant Persimmon has said it is on track to deliver around 10,500 homes for the full year following a stabilisation of the UK housing market in 2024.
The London-listed firm said pricing had held firm in the period, with incentives continuing to run around four to five per cent on average.
Current forward sales sit at £2.02bn, compared with £1.73bn the year prior. Private forward sales rose a whopping 40 per cent to £1.45bn, with an average selling price of around £291,400, five per cent higher than at the same time last year.
The results were in-line with analysts expectations, propped up by customer sentiment as interest rates began to reduce and affordability improved.
“Positive momentum in the business continued over the summer months and we remain on track to deliver growth in completions to around 10,500 for the full year,” Dean Finch, Group Chief Executive, 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 per cent on the prior year with the private average selling price robust.”
Persimmon shares are up over six per cent this year to date.
The firm said it was continuing to assess the implications of the recent Autumn Budget, with “some signs” of build cost inflation beginning to emerge, although growth prospects moving into 2025 remain “optimistic.”
Finch added: “We continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings into active developments.”
