Persimmon house completions rise 7%

Aaron Morby 11 years ago
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House builder Persimmon is stepping up house building as demand increases from the Government’s Help to Buy scheme.

The firm aims to open up 85 new sites in the second half of the year bringing the total throughout the country to 385.

But it warned that while the process of achieving outline planning consents has continued to improve as a result of the Government’s new National Planning Policy Framework, the volume of pre-start conditions was delaying progress on a number of developments.

According to a first-half trading statement this morning ahead of its interim results, Persimmon completed 5,022 new homes in the first six months of 2013, an increase of 7% on the same time last year.

Total revenues for the first half of the year reached around £900m, 12% higher than last year, as average selling prices rose 5% to £179,200.

The house builder said the improvement has seen it deliver an operation margin of around 15%, one year earlier than forecast.

Persimmon has secured 1,124 Help to Buy reservations since launch.

“While our weekly private sale reservation rate for the first half of the year was 12% ahead of last year, our reservation rate as measured from the date of introduction of the “Help to Buy” scheme was 30% stronger,” said the firm.

“We are encouraged by the gradual increase in the number of major mortgage lenders supporting this Government initiative and anticipate that all the major lenders will be providing “Help to Buy” related mortgage products over the coming weeks.

“This will present a wider choice to customers and will help to support further increases in new home sales.”

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