This reduced forward sales position led to a 42% reduction in group completions in the first quarter to 1,136 homes (Q1 2022: 1,950 homes).

In a trading update this morning, Dean Finch, group chief executive, said Persimmon responded quickly to the deterioration in market conditions in the second half of last year, by controlling costs and managing build programmes to conserve cash.

He said that this has seen build rates in the first quarter fall 30% year-on-year to 176 units per week (Q1 2022: 252 units per week).

He added that profit margins would be significantly impacted by lower completions and build cost inflation tracking at 8%-9% outstripping a modest increase in average selling price.

“While the outlook remains uncertain, we are encouraged by the level of visitors to our sites and the normalisation of cancellation rates, which resulted in a steady improvement in sales rates across the period which has continued in early April,” he said.

“These early signs of increasing customer confidence are particularly evident in demand for our three, four and five bed homes.

“While interest remains good for all our homes, sales to first-time buyers remain more challenging, reflecting stretched affordability and reduced mortgage availability at higher loan-to values, particularly in regions with higher house prices.”

He added: “If sales rates continue at the levels seen year to date, we would expect full year 2023 volumes to be toward the top end of the previously indicated range of 8,000 to 9,000 completions.

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.”