Demand for Persimmon homes staying high

Housebuilder Persimmon says that demand for its homes remains strong.

Persimmon has its West Midlands office in Telford
Persimmon has its West Midlands office in Telford

The group, which has its regional office in Telford and is building homes across the West Midlands, expects to deliver growth of between four and seven per cent on 2021 levels this year.

Ahead of its annual general meeting, chief executive Dean Finch said: "Persimmon continues to perform well. We are currently trading in line with expectations, demand remains strong, our private average sales rates are circa two per cent higher year on year and we have a robust forward order book of circa £2.8 billion.

"As expected, reflecting the profile of outlet openings, we anticipate that completions this year will be weighted towards the second half, with first half completions being lower than those delivered in the first half of 2021."

Mr Finch said that earlier this month Persimmon signed the Government's pledge on cladding removal and fire safety remediation.

"We continue to believe the £75 million provision we have already set aside remains appropriate," he added.

He said Persimmon was well placed for the future with a strong and experienced senior management team, positive momentum in outlet openings, improving build quality and customer service and growing land holdings with industry-leading embedded margins.

"While we remain mindful of current uncertainties, particularly regarding consumer confidence, rising interest rates and the impact of the tragic conflict in Ukraine, the board is confident of the group's future disciplined growth and success," added Mr Finch.

The group has had an encouraging start to 2022 with trading in line with expectations.

Demand for new homes continues to outstrip supply with good levels of customer enquiries and cancellation rates remaining at low levels.

The average selling price for homes sold to private owner occupiers in the forward order book is circa £266,000 compared to £252,000 last year.

The group is currently on track to open around 75 new outlets during the first half of 2022, subject to achieving planning consents.

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