Housebuilder Persimmon has reported a rise in sales but warned of possible build cost inflation.
Bosses at the York-based developer – the country’s second largest – said they remained optimistic about growth as they highlighted “signs of built cost inflation” in price negotiations for 2025, and the introduction of new building regulations and employer national insurance increases announced in the recent Budget as headwinds. In third quarter results posted to the London Stock Exchange, Persimmon said demand for its houses had continued into the autumn, spurred by falling interest rates and better affordability for would-be buyers.
Net private sales per outlet, per week, in the period between July 1 and November 3 were 0.70, up from 0.51 in the same period last year. Meanwhile current forward sales reached £2.02bn, compared with £1.73bn last year.
Overall, the firm said it is on track to complete about 10,500 homes this year, up from 9,922 in 2023, of which 85% are already exchanged or completed. Persimmon’s private average selling price in the forward order book stayed at about £291,400, compared with £290,660 at the end of June this year, which was 10% higher than the forward order book at the end of December and 5% higher than this time last year.
The firm also signalled it was encouraged by the Government’s early talk of planning reforms and that it was looking forward to the outcome of the consultation on the National Planning Policy Framework, later this year.
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 c.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.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
