Persimmon points to improved H1 new home figures Mortgage Strategy

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UK housebuilder Persimmon reports an increase in home completions and average sale prices in its half-year numbers.

For the six months top the end of June, the company saw a 7% increase in private completions to 3,987 homes with total completions up 4% to 4,605.

The housebuilder insisted it was on track for completions of 11,000-11,500 homes for the full year.

The current private forward order book is up 11% at £1.25bn at a private average sales price of around £292,800, up 1.3% on the prior year.

Including partnerships, Persimmon’s total current forward order book is up 9% at £1.86bn. The housebuilder is now 80% secured on private completions and fully secured on partnerships completions for the full year,  which it says, positions it well as the firm enters the second half of the year.

Persimmon reported a 13% increase in underlying operating profit, driven by increased volume and on-going operational discipline.

Commenting on the latest numbers Persimmon group chief executive Dean Finch said:

“I am pleased that we have continued to grow in the first half of the year despite challenging market conditions and with affordability still an important constraint. Our average sales price, sales, completions, planning approvals, active sites and forward order book are all up, many against industry trends, showing that our strategy including a focus on self-help has continued to deliver.”

He added: “Disciplined investment in land is being complemented by planning success to secure additional site openings.”

The latest figures from Persimmon come at the same time industry consultant McBains reported a more upbeat outlook for UK housebuilding.


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