Persimmon posts 42% fall in new home completions

Housebuilder Persimmon has reported a 42% drop in new home completions during the first quarter of the year. However, Persimmon said it expects full-year build volumes to reach the “top end” of its previously guided range of between 8,000 to 9,000 completions. Persimmon said sales prices have “remained firm” during the quarter. It added that cancellation levels are showing signs of normalising and visitor numbers have grown in recent weeks. New home completions stood at 1,136 in the quarter to the end of March. Net private sales per outlet were down by 37% to 0.62. Group chief executive Dean Finch said: “Our performance in the first quarter was as we expected and reflects the challenging trading conditions in Q4 2022 and consequent lower forward order book as we entered the year. Trading over recent weeks has offered some signs of encouragement with visitor numbers up, cancellation levels normalising and sales rates continuing the steady improvement evident since the start of the year.” Finch added that the longer-term demand fundamentals for new homes “remain robust”. Finch said: “Looking beyond 2023, Persimmon has a strong platform from which to grow outlets and volumes as the market recovers. We have an excellent pipeline of new land opportunities to support growth in 2024, subject to planning, and we are encouraged by the early signs of improved customer confidence.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews