Persimmon ‘on track’ to build more than 10,000 homes

The chief of Persimmon says the housebuilder is on track to complete more than 10,000 homes this year after a “good start to the year”. 

In a trading update published this morning (Thursday), the housebuilding giant reported 1,027 completions in the three months to 31 March 2024, slightly down from 1,136 in the same period the year prior. 

Dean Finch, group chief executive, said the first quarter performance was “in line with expectations” and reported an improvement in sales rates.  

He said the business was on track for completions between 10,000 and 10,500 for the full year. 

It comes after the buiness published its annual results last month, which saw its pre-tax profit cut in half as high interest rates hit demand for new homes.

However, Finch said trading in recent weeks had been ”encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year”.

“Overall, our private forward order book is up 18% on the prior year with the embedded private average selling price ahead of the position at the start of the year,” he added.

Net private sales per outlet stood at 0.66 in the period, while the firm’s current forward sales position stood at £1.75bn, roughly £1.14bn of which consists of private forward sales. 

The average private sale price was around £283,000 at the end of the period, up 6% since the position at the start of the year.

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After £145m of land spend in the first quarter, of which £96m related to settlement of land creditors, Persimmon’s owned and under control land holdings stood at 82,500 plots.  

In a note on outlook, the firm said the first-half performance would be subject to embedded build cost inflation and lower average selling prices, which are expected to reverse in the second half. 

It predicted an operating margin for the full year in line with the year prior.