House completions expected to grow at Persimmon as sales rise
York-headquartered housebuilder, Persimmon, says it should deliver completions of about 10,500 properties for the full year, (2023 9,922 completions) as it releases an update on trading for the period since 1 July 2024.
During the third quarter the business delivered 1,416 homes (2023: 1,439) including a 3% increase in private homes to 1,267 (2023: 1,234) and 149 Partnership homes (2023: 205).
Persimmon adds that demand for its homes has continued into the autumn selling season, helped by improvements in customer sentiment as interest rates begin to reduce and affordability improves.
Dean Finch, group chief executive, said: “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.
“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% on the prior year with the private average selling price robust.
“We continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings into active developments.”
The business says its private forward sales position has increased 40% to £1.45bn, reflecting more stable market conditions in 2024.
Persimmon note it is progressing with its fire safety remediation commitment, with works underway or complete on 72% of known developments. It continues to expect the bulk of works will be completed over the course of the next two years.
In its outlook, the company says it is seeing signs of build cost inflation beginning to emerge in price negotiations for 2025 and it is working with its supply chain to manage costs, which will also be impacted by new building regulations and the employer national insurance increases announced in the Budget.
The firm’s update states: “We are seeking to mitigate the impact of these cost increases through robust commercial controls and other management actions.
“Early announcements from the Government around planning reforms have been encouraging.
“We look forward to the outcome from the consultation on the National Planning Policy Framework later this year.”
