Persimmon’s forward sales slashed in half

Persimmon’s private forward sales have more than halved, with 2023 set to be a bleak year for the housebuilder. In a trading update published this morning, Persimmon said its current forward sales position stood at £1bn, down 36% from the £1.6bn reported at the end of 2021. But its private forward sales position is even more effected, slumping to £500m from 2021’s £1.1bn. The housebuilder has also started to eat into its cash reserves, although it still has £860m in the bank. Group chief executive Dean Finch said: “In the second half of the year, rising interest and mortgage rates, inflation and weaker consumer confidence began to impact customer behaviour across the housing market. This change in market conditions gathered pace in the fourth quarter and is reflected in the reduction in our recent weekly sales rates and a lower forward sales position as we enter the new financial year. “However, with high-quality land holdings, a strong balance sheet and an experienced management team, Persimmon is well placed to navigate this challenging short-term backdrop, whilst continuing to take advantage of any opportunities that may arise.” Persimmon sold 14,868 homes in 2022, up 2% on the previous year. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews