UK housebuilder Persimmon traded in-line with expectations during the period and remains on track to deliver completions of around 10,500 for the full year.
During the third quarter the company 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).
In it’s Q3 trading statement Persimmon said demand for its homes continued into the autumn selling season, helped by improvements in customer sentiment as interest rates began to reduce and affordability improves.
“We are on track to grow to circa10,500 homes this year, compared to 9,922 in 2023, of which 85% are already exchanged or completed (2023: 84%), with further growth in outlets and volume expected in 2025,” the statement said.
The housebuilder also said that early announcements from the government around planning reforms had been encouraging. And it looked forward to the outcome from the consultation on the National Planning Policy Framework later this year.
Persimmon group chief executive Dean Finch commented: ” 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.”
Quilter Cheviot property research analyst Oli Creasey pointed out that the sales per outlet figure was much improved versus this time last year, and the order book is larger compared to the third quarter in 2023. However, the sales rate figure appeared to have stalled recently, having been up at 0.71x in the first half of the year, and is still well below the long-term average, which is closer to 0.85-0.9x.
“The summer holiday season can sometimes dampen demand, and the recent speculation on the budget may have also encouraged some would-be buyers to defer purchases until the new tax situation was known, so achieving a flat sales rate for the period may prove to be an achievement in itself.”
