Homes sales fall 33% at Persimmon
York-headquartered housebuilder, Persimmon, says it managed to record a good performance in difficult circumstances, in an update ahead of its final results for the year ended 31 December 2023.
It completed the sale of 9,922 new homes in 2023, down 33% compared to 2022’s figure of 14,868. The business reported cash at 31 December of £420m (2022: £862m).
The group’s private average selling price increased by about 5% to £285,770 (2022: £272,206).
Dean Finch, group chief executive, said: “Persimmon performed well in challenging market conditions, delivering completions ahead of expectations in 2023 alongside enhanced quality metrics of our already five-star homes.
“Persimmon’s offering is resonating well with customers with sales rates relatively robust throughout the year.
“We have successfully balanced our need to control costs, whilst investing in the business to position it for sustainable growth when conditions improve.”
The business adds it that saw a sustained pick up in interest in its homes throughout the year from the lows of quarter four 2022, albeit with demand lower than previous years as a result of high interest rates and the removal of Help-to-Buy.
Persimmon’s forward sales position is up 2% on the prior year at £1,060m (2022: £1,040m), of which £499m relates to private forward sales, up 4% (2022: £478m).
In its outlook statement, the group says it expects market conditions to remain highly uncertain during 2024, particularly for first-time buyers and with an election likely this year.
However, it also notes mortgage rates are beginning to ease, and build costs continue to moderate which will benefit completions in 2024. Persimmon says the longer-term demand outlook for new homes remains favourable.
