Demand oustripping supply as major housebuilder remains confident

A Persimmon development

“Demand for new homes continues to outstrip supply” at housebuilder Persimmon as it remains unfazed about any economic wobbles that could affect the foundations of its forecasts.

The York-based group is one of the UK’s largest housebuilders and says it has a “strong platform for growth” as it is on track to open 75 sites during the first half of this year.

Persimmon’s group chief executive Dean Finch was upbeat while remaining “mindful of current uncertainties, particularly regarding consumer confidence, rising interest rates and the impact of the tragic conflict in Ukraine”.

He said: “The UK housing market remains supportive and Persimmon is well-placed for the future, with a strong and experienced senior management team, positive momentum in outlet openings, improving build quality and customer service and growing land holdings with industry-leading embedded margins.”

The group expects completions will be weighted towards the second half and to deliver volume growth for the full year of around 4-7%.

Finch added: “Persimmon continues to perform well. We are currently trading in line with expectations, demand remains strong, our private average sales rates are c.2% higher year on year and we have a robust forward order book of c.£2.8bn.”

Persimmon signed the Government’s pledge on cladding removal and fire safety remediation this month and expects the £75m provision it had previously made “remains appropriate”.

The FTSE-100 company has committed to its second payment of shareholders as part of its strategy to return £750m this year. The 110p-per-share payment will be made in June, following a 125p-per-share distribution earlier this month.

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