New home completions fall 37% at housebuilder

York-headquartered housebuilder, Persimmon, has reported 1,439 new home completions in quarter three 2023, a 37% fall compared to the equivalent period in 2022.

The group’s private selling price on completions was up 2% in the quarter on the prior year at £296,822.

And the hiring freeze the business has in place means Persimmon says its headcount is likely to reduce by around 700 during 2023.

Dean Finch, group chief executive, said: “Trading in the period was in line with expectations and pricing was broadly stable.

“We are on track to deliver around 9,500 quality new homes in 2023 with operating profit in line with expectations and at an operating margin similar to the first half.

“While the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period.”

Persimmon adds it has taken a proactive approach with suppliers and subcontractors to secure price reductions on both materials and labour over the past few months.

It notes build cost inflation has been more stubborn than expected at the start of the year. However, the developer also states that build costs have moderated since the half year, which will benefit completions in 2024.

Into 2024, the business says it anticipates market conditions will remain highly uncertain, but stresses the longer-term fundamentals for the market remain positive.